Boscov's In Federated Deal

READING, PA-Federated Department Stores is selling 10 of its units in Maryland, New Jersey and Pennsylvania to Boscov’s as part of its disposition of stores as a result of its acquisition of May Department Stores. The parties did not disclose the exact terms of the deal, but Federated executives say that proceeds will be part of a larger $400 million to $500 million they expect to gain from the sale of duplicate stores.

Six of the stores are in Pennsylvania, three are in Maryland and one is in New Jersey. Five are Strawbridge’s and two are Kaufmann’s, both former May chains, and three are Macy’s stores. Clearance sales at the stores began late last month, and executives expect the deal to close in the second quarter.

Federated has announced 82 store closings in centers where it has duplicate department stores. Its $11-billion acquisition of May closed in August, making Federated the largest department-store chain in the country, with 850.