"It is important for associates of both companies to understand that they will be as sensitive and caring as possible throughout this process. They will honor the pledge made previously to May Company associates that there will be no workforce reductions or job eliminations as a result of the merger prior to March 1, 2006," he said.
The current plan is to operate all May Company stores under their existing nameplates at least through the 2005 holiday shopping season. Divestiture of duplicate May Company and Macy's locations will begin in 2006.
They will be offered for sale to landlords, developers and interested third parties. Federated said it intends to comply with all existing lease and operating agreements, and the divestiture of certain locations will be subject to the satisfactory completion of negotiations with various third parties.
Shareholders of Federated and May Company have approved the merger, which is expected to close in the third quarter of 2005, pending completion of regulatory review.
Federated, with corporate offices in Cincinnati and New York, is one of the premier retailers, with annual sales of more than $15.6 billion. Federated operates more than 450 department stores in 34 states, Guam and Puerto Rico under the names of Macy's and Bloomingdale's. The company also operates macys.com and Bloomingdale's By Mail.
Federated Department Stores Inc