Belk Happy to Take Chains Off Saks’ Hands
Saks Incorporated is looking to concentrate on its Saks Fifth Avenue luxury department store business and Belk, Inc. has been happy to help. In July 2005, it bought 47 Proffitt’s and McRae’s department stores from Saks. Yesterday, the two retailers announced an agreement for Belk to acquire the 38-store Parisian chain from Saks.
Tim Belk, chairman and CEO of Belk, Inc., said in a company press release: “This is another excellent opportunity for Belk to expand its store base and further strengthen our market leadership in Alabama and other key markets within our existing footprint. Just as with the earlier purchase of the Proffitt’s and McRae’s stores from Saks, the Parisian stores are located in great markets and are similar to Belk in many ways. Parisian is known and respected for offerings of top fashion brands and excellent customer and community service.”
Belk anticipates it will take 18 months for it to fully integrate Parisian into its operations. As with the previous deal for Proffitt’s and McRae’s, the company intends to rebrand Parisian under the Belk banner.
The deal will include Belk paying $285 million for the business as well as picking up the leases for all Parisian locations. The closing date is scheduled for October 2 pending any unexpected regulatory reviews or closing issues.
Saks Incorporated’s CEO Steve Sadove said a substantial portion of the proceeds from the Parisian sale will go to shareholders.
Discussion Questions: What will this deal mean for Belk and Saks? Where do you see the two businesses going from
- Belk, Inc. Announces Agreement with Saks Incorporated
to Acquire Parisian Department Stores – Belk, Inc.
- Saks Incorporated Agrees to Sell Parisian
to Belk, Inc. for $285 Million – Saks Incorporated/Business Wire