Federated Department Stores Inc announced it has finalized an agreement for the sale of its downtown Boston Filene's store to Vornado Realty Trust for approximately $100 million (approximately $70 million after tax).
The Filene's in downtown Boston (656,000 square feet, opened in 1890) is a duplicate location Federated previously announced for divestiture as a result of its acquisition of The May Department Stores Company. With this agreement, Federated now has announced buyers for 57 of its 80 duplicate locations.
Macy's continues to serve Boston customers with its current store in Downtown Crossing. Federated also will continue to operate a clearance center on the first floor of the downtown Filene's at least through summer 2006.
Federated is supporting Vornado's work with city officials on redevelopment plans for the to-be-acquired Filene's buildings, including the granting of landmark status by the Boston Landmarks Commission earlier this year.
The sale transaction is expected to be completed in the fourth quarter of 2006. Federated said proceeds from this transaction are included in the $400 million to $500 million after-tax total expected from the sale of duplicate stores nationwide, as previously announced.
Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with fiscal 2006 sales expected to be more than $27 billion.
Federated operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy's, Bloomingdale's, Famous-Barr, Filene's, Foley's, Hecht's, Kaufmann's, L.S. Ayres, Marshall Field's, Meier & Frank, Robinsons-May, Strawbridge's and The Jones Store.
Federated Department Stores Inc
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