Bids Called Off for Eddie Bauer
Downers Grove, Ill., Apparel retailer Eddie Bauer is reportedly no longer on the selling block. The parent company, Spiegel, which is in bankruptcy, is said to have pulled Eddie Bauer off the auction block, after a seven-month sale process failed to land an acceptable bid, according to the New York Post. Eddie Bauer was put up for sale in April as Spiegel sought to repay creditors some of the $1.5 billion it owes.
The Post reports that while Eddie Bauer was expected to be acquired for as much as $1 billion, offers were only in the $600 million to $700 million range. The retailer operates roughly 425 stores and a catalog.
May, Abercrombie Post 3Q Results
New Albany, Ohio, Abercrombie & Fitch Co. posted net income of $40.1 million in the third quarter, down from $50.5 million in the year-ago period. The decline came despite a 17% increase in sales to $520.7 million and same-store sales growth of 1%.
In other financial news, The May Department Stores Co. recorded net earnings of $8 million in the third quarter, down from $47 million last year. Although the retailer’s net sales were 17% higher at $3.48 billion, the merchant’s same-store sales fell 3.4%.
Ahold Plans Move to Amsterdam
Zaandam, The Netherlands, Royal Ahold will move its headquarters from Zaandam to Amsterdam, probably in the fourth quarter of 2005, the grocery giant says. The company says the move is part of an overall repositioning of Ahold’s group support office.