Subsidiary's Chairman-CEO Departs for Limited Stores

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CHICAGO (AdAge.com) -- Federated Department Stores found a potential buyer for its Fingerhut catalog and e-commerce subsidiary, signing a non-binding letter of intent with Business Development Group Acquisitions.

Business Development Group, based in Wayzata, Minn., is conducting a due diligence and must notify Federated in early March whether it will proceed with an acquisition, which is also dependent upon its ability to obtain the financing necessary to buy Fingerhut.

Cincinnati-based Federated, which acquired Fingerhut for $1.7 billion in 1999, closed the unit last month following losses in 2000 and 2001.

Executive departs
In a separate

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announcement today, Federated said Jeffrey Sherman, chairman-CEO of Federated Direct -- which includes Fingerhut, macys.com and Bloomingdale's By Mail -- resigned effective March 1 to take a position at Limited Stores.

Corporate responsibilities for Fingerhut will be assumed by Ronald Tysoe, vice chairman of Federated. Mr. Tysoe, along with Fingerhut President Michael Sherman and Steven Lightman, executive vice president of Fingerhut Catalog Operations, will maintain day-to-day operations while the sale is pending.

Dawn Robertson, previously president and chief merchandising officer at Federated Direct, will take over Jeffrey Sherman's oversight of macys.com and Bloomingdale's By Mail.

Mr. Sherman will be CEO of Limited Inc.'s Limited Stores unit, succeeding Rob Bernard, who resigned from the post last month. Diane Holtz took over Mr. Bernard's role as president.

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