Headlines

Fingerhut Clean-Up Continues

Federated selling off its debt

Published

24 years ago

October 24, 2000

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In an effort to improve what's left of its Fingerhut catalog business, Federated announced it would auction off $2.4 billion in unpaid customer accounts.

The Cincinnati-based retailer recently cut Fingerhut's work force by approximately 25 percent and said it would take charges of up to $100 million to restructure the division. While the company said auction results are not expected to generate substantial revenue, selling off the catalog's debt should demonstrate to investors Federated's efforts to resolve problems quickly.

Joel Zegart, president of JBS & Associates, Chicago – the private asset-sale advisory firm hired to organize the auction — is optimistic about the venture, explaining his company believes many of the accounts could be revived.

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