Columbus, Ohio, As part of its efforts to find strategic alternatives for its Value City chain, Retail Ventures Inc. announced late Wednesday that it is selling up to 24 Value City Department Stores to Burlington Coat Factory.
In an interview with the Columbus Dispatch, Retail Ventures president and CEO Heywood Wilansky said, “We’re continuing to look at other alternatives. We’re not eliminating or guaranteeing anything else at this point in time.”
The number of stores sold is subject to change, said the company, pending negotiations with landlords. Value City stores are located mostly in Ohio, Illinois and Pennsylvania. Proceeds from the sale will be used to reduce Value City's debt, the company said.
The discount-department-store chain has reported a drop in same-store sales for three consecutive quarters, including a 7.3% decrease in the second-quarter earnings released last month. In February, the company eliminated an undisclosed number of jobs at its Value City stores.
Retail Ventures' other divisions, DSW and Filene's Basement, will not be effected by the sale, company officials said. Value City Furniture Stores, a separate business, also will not be affected.