Several potential buyers have stepped forward to say they might want to buy Fingerhut Cos. Inc., Carol Sanger, spokesperson for Federated Department Stores Inc., confirmed.
One, Tom Petters, who once operated a chain of closeout retail stores, is the founder and chairman of Redtag Inc.
Another is Peter Lytle, who revived Minnesota companies Creamette Co. and Faribault Woolen Mills. He leads a group of investors that approached St. Cloud, MN, Mayor John Ellenbecker.
Other investors reportedly have expressed interest, but Sanger would not say how many.
Last week, when Federated announced the liquidation of the catalog, it said that it was unlikely that a buyer would emerge for Fingerhut in this poor economic climate.
"There is a rather large gulf between expressing interest and being able to financially execute a deal of that size," Sanger said today.
Sanger would not comment on possible terms of the deal.
Federated is referring interested parties to its investment banker, Credit Suisse First Boston, according to Sanger.
Federated said last week it plans to sell Fingerhut¹s assets, which include the customer database of 4.1 million active buyers. It will also sell the ongoing Arizona Mail Order business.
About 6,000 employees will lose their jobs in layoffs that are to begin at the end of February. Some 4,700 of them are in Minnesota and 1,300 are in Tennessee.
Federated bought Minnetonka, MN-based Fingerhut in February 1999 for $1.7 billion.
In a separate development, Federated announced it was closing to Macy¹s stores this spring in Alabama and Georgia.
