Value City Department Stores, Inc. (Columbus, Ohio) has decided not to sell its DSW Shoe Warehouse, Shonac Corp. and Filene's Basement subsidiaries.
“Given our recent performance and our desire to keep the businesses intact, Value City has terminated all discussions and plans for the sale of its business units,” said Value City vice chairman and ceo George Kolber. “We are pleased that our business units will remain together and we fully expect to be able to refinance our current bank facility and the Schottenstein Store facility in a manner sufficient to sustain current operations and finance planned growth.” Schottenstein Store Corp. (Columbus), part-owner or operator of the 70-unit Value City Furniture superstore chain and American Eagle Outfitters, owns 55 percent of Value City Stores. A letter of intent, signed by Schottenstein in August 2001 to sell those subsidiaries, has been terminated. Instead, the parties agreed to continue the Schottenstein Stores'$100 million subordinated credit facility for Value City.
In what may be a related item, Value City and Mazel Stores Inc. (Solon, Ohio) agreed to terminate their VCM Ltd. joint venture that operates the health and beauty care, toys and sporting goods departments in Value City Department Stores. Value City bought out the Mazel interest for $8.375 million and will now operate these departments independently. Mazel owns the nearly 80 Odd Job, Odd Job Trading and Mazel's closeout stores in eight states (mostly in New York and New Jersey).
Value City operates about 110 bargain department stores, primarily in Ohio and Pennsylvania, plus more than 100 DSW Shoe Warehouse stores nationwide, the 20-unit Filene's Basement off-price chain and 136 licensed Shonac shoe departments.