Federated Department store, which was the largest conglomerate of department stores through the mid-80’s, was torn apart by a hostile takeover and driven into bankruptcy in the late 80’s. Macy’s, who had taken over the West Coast Stores of Federated (Bullock’s/Bullocks Wilshire & I Magnins) was also driven into chapter 11. Federated immerged from bankruptcy in the early nineties, took over the Broadway/Emporium stores, the then stuggling, Macy’s, and most recently the Robinson/May Co. In June of 2006 Federated changes their company name to their largest brand, and is now known as Macy’s Inc.
The current economic crisis has effected all industries. In the retail arena, department stores have taken the hardest hits. Consumers are cutting back amid the recession. Large numbers are hunting for bargains and trading down to discounters. This month, the retail giant, Macy’s, with 810 deparment stores, announced that it is shutting down 11 underperforming stores in 9 states — affecting 960 employees.
“These closings are part of our normal-course process to prune underperforming locations each year in order to maintain a healthy portfolio of stores,” said Macy’s Chief Executive Terry J. Lundgren in a statement.
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