"Consolidation decisions are the result of careful study regarding the size and location of facilities required to support the combined company's financial credit and administrative services needs," said FACS Group President Amy Hanson.
"With the May Company merger, we will be able to combine the best of two excellent credit operations. By consolidating and streamlining our organization, we will maintain and improve the high quality and efficiency of service our customers and associates have come to expect."
Credit facility consolidations are consistent with Federated's previously announced estimates to realize approximately $175 million in cost synergies in 2006 and $450 million in annual cost synergies in 2007 and beyond as a result of the May Company merger. Expenses associated with the consolidations are included in the previously announced estimate of approximately $1 billion in one-time costs spread over three years beginning in 2005.
Nation's leading retailer Federated, with corporate offices in Cincinnati and New York, is one of the nation's premier retailers, with 2004 sales of more than $15.6 billion. With the May Company's 487 department stores and 710 bridal and formalwear stores in 47 states, the District of Columbia and Puerto Rico, Federated operates nearly 950 department stores and more than 700 bridal and formalwear stores in 49 states.
Federated Department Stores Inc
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