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Federated Hoping for Meli Kalikimaka

Department store organization to add Hawaii's Liberty House chain

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Federated Department Stores (Cincinnati) officially confirmed that it has entered into an agreement to purchase the Honolulu-based Liberty House department store chain. The deal is expected to close in July.

The 12 department stores and seven resort and specialty stores will become part of Federated's Macy's West office in San Francisco. They will retain the Liberty House name at first, though all will ultimately be converted to Macy's stores.

“[The acquisition] gives us entry into a very attractive new market,” said chairman and ceo James Zimmerman, “along with the ability to extend and build on the strengths of the Macy's franchise and the considerable talents of the Macy's West organization.”

Federated said it plans to add about $24 million in conversion capital to its existing 2001 capital budget, raising that budget to $800 million. Its capital budgets for 2002 and beyond will remain $850 million a year.

Liberty House, with its stores throughout the Hawaiian Islands and Guam, will add about $275 million in sales to the $18.4 billion department store chain, the nation's largest. Federated currently operates more than 430 Macy's, Bloomingdale's, Bon Marche, Burdines, Goldsmith's, Lazarus and Rich's stores in 33 states and Puerto Rico. The Liberty House stores range in size from 327,000 square feet in Honolulu's Ala Moana Mall to its 1806-square-foot Jewelry Gallery in the same mall. Apart from its Ala Moana flagship, Liberty House's other 11 department stores average 76,500 square feet. Its seven mall-, hotel- and resort-based specialty stores average 3300 square feet.

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