Federated Selling Downtown Filene’s Unit
NEW YORK – Another piece of retail history is about to fall by the wayside due to Federated Department Stores’ acquisition of former archrival May Department Stores.
Federated said Monday it has agreed to sell the downtown Boston Filene’s unit to Vornado Realty Trust for approximately $100 million.
The sale of the 656,000 square foot store, opened 116 years ago, is part of Federated’s program to eliminate location redundancies resulting from its acquisition of The May Department Stores Co. The transaction, expected to be completed during the fourth quarter, means that Federated now has buyers for 57 of the 80 “duplicate locations” it intends to sell.
Federated said it is “supporting Vornado’s work with city officials on redevelopment plans for the to-be-acquired Filene’s buildings, including the granting of landmark status by the Boston Landmarks Commission earlier this year.”
The store housed the original “Filene’s Basement,” which has since become a separate business and is operated by Retail Ventures Inc.
Proceeds from the sale, which is expected to total about $70 million after taxes, are included in the $400 million to $500 million after-tax sum expected from the sale of duplicate stores nationwide, Federated said.
