The sale of Federated Department Stores Inc.’s Fingerhut division, which operates a web site and a catalog operation, to Business Development Group Acquisitions Inc. is off, the companies reported today.
The companies said an environment in which acquisition funding is scarce contributed to the termination of sale talks.
Federated said no other potential buyers interested in acquiring Fingerhut as a going concern have been identified since its announcement in January that it intended to dispose of the Fingerhut operation. It will pursue selling Fingerhut’s individual assets and will terminate the Fingerhut catalog within 30 days. It still expects to sell catalog subsidiaries Arizona Mail Order, Figi`s and Popular Club as going concerns.
The company reaffirmed earlier expectations that the sale of Fingerhut`s assets will generate $1.1 billion to $1.3 billion of after-tax cash proceeds over the next four years.