Retail Ventures In Value City Sale Talks

COLUMBUS, OH-Retail Ventures Inc. is in talks to sell its Value City department-store chain, according to a company statement. Management is not saying who is bidding for the concept, but did reveal that the bidder gets a 25-day exclusivity period during due diligence.

The sale would include about 89 Value City stores. Burlington Coat Factory is currently engaged with Retail Ventures in a deal to acquire up to 24 Value City units, which will not be included in the larger portfolio sale. The Burlington Coat venture is scheduled to close during next year’s first quarter.

Value City has recently recorded poor sales performances. During its third quarter, which ended Nov. 3, same-store sales plummeted 13.4% year over year, while total sales dropped to $298.4 million from $341.2 million the same year-ago period.