Allied Stores Selling Blocks Division to Federated
NEW YORK (AP) _ Allied Stores Corp. announced Monday it is selling the 12 stores in its Blocks Inc. division to Federated Department Stores Inc. for $55 million.
Federated said it planned to operate the stores - which include 10 Blocks stores in Indiana and Ohio and two Herpolsheimer’s stores in Michigan - as part of its Lazarus department store division.
The stores will retain their current names at least for the time being, said Carol Sanger, a Federated spokeswoman.
The Lazarus division targets the moderate and upper-moderate retail markets.
Federated operates more than 630 stores, including the Bloomingdale’s, Bullock’s-Wilshire, Filene’s and Burdine’s chains.
Allied, which operates nearly 700 department and specialty stores, was acquired late last year by Campeau Corp., a Toronto-based real-estate concern.
Campeau said earlier this year it planned to sell 16 Allied divisions and cut its store holdings by more than half to pay off $1.1 billion in bank loans used to complete the Allied purchase.
The company earlier announced the sale of its Dallas-based Joske’s and Nashville, Tenn.-based Cain-Sloan divisions to Dillard Department Stores Inc. and the sale of its Miller’s division in Tennessee to Hess’s Department Stores Inc.