Lytle's plan to buy and run Fingerhut's catalog business was thwarted by financing problems. Federated says it will stop taking new catalog orders within a month and start selling the pieces of Fingerhut, including its inventory, receivables and real estate -- including the company's huge distribution center.
Federated expects to make $1.1 billion to $1.3 billion after taxes over the next four years by selling Fingerhut piecemeal. Federated also plans to sell three Fingerhut subsidiaries intact. Federated hopes to sell some pieces of Fingerhut to buyers who are interested in retaining employees, such as call centers and data-processing facilities.
Some 2,400 employees still work at Fingerhut's distribution operation, which is a major source of jobs in St. Cloud.
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