A sales price was not disclosed. At stake is the fate of Fingerhut's 6,000 workers,including 4,700 in Minnesota--as well as Fingerhut's considerable real estate in Minnesota, including its 1.1-million sf distribution center here, its office space in Plymouth, MN, and a smaller office in Eveleth, MN.

The St. Cloud distribution center was a subject of controversy in the mid-90s when the company threatened to move to Kansas City unless it got help from state help the company build a $20-million, 500,000-sf expansion. A deal was worked out in 1994 for a public subsidy adding up to $4.8 million, including a $1-million grant, and included a special measure allowing the city of St. Cloud to set up a tax increment financing district for the project.

Last month, Federated--known for its upscale Macy's and Bloomingdale's department stores--said it was poised to liquidate Fingerhut because it no longer fit its strategy. Federated bought Fingerhut in 1999 for $1.7 billion, largely because it appeared to be well positioned in the Internet retail business, given its huge distribution capabilities. But that business never panned out as expected, and Fingerhut began to run into significant financial problems.