FDS creates largest US department store chain

An $11 billion buy-out by Federated Department Stores of May Department Stores will create the largest single chain of department stores in the US.

Bringing together brand names such as Bloomingdales, Macy’s, and Marshall Fields, the deal will mean that Federated Department Stores will have ownership of over 1,000 stores across the US, with combined annual revenues of $30bn.

Both facing strong competition from Wal-Mart, the companies had attempted to merge before, but talks had broken down. However, with the resignation in January of May’s chairman and chief executive Gene Kahn in January, talks were quickly resumed and an agreement pushed through.

In the deal, Federated will also take on $6 billion of May’s debt.