Ted Deikel, the former owner of Fingerhut Cos., and a partner plan to buy parts of the catalog retailer from Federated Department Stores Inc.
Deikel, and his partner, Tom Petters, said they had tentatively agreed to buy real estate, inventory and other Fingerhut assets for an undisclosed amount. The two signed a non-binding letter of intent and negotiations are continuing, Fingerhut spokesman Ben Saukko said.
“I don’t know what Ted’s plans are, it’s possible that we could save some area jobs here which has been our goal all along,” Saukko said. Signing the letter of intent is “a step in the right direction but this is not a done deal yet.”
Deikel was unsure of how many of Fingerhut’s jobs could be saved. The firm employed about 6,000 but terminated many positions since parent Federated Department Stores Inc. announced in January that it would liquidate Fingerhut. Fingerhut took its final order last week.
Federated had reached a similar agreement with Wayzata, MN-based Business Development Group Acquisition Inc, an investment group led by business turnaround specialist Peter Lytle. That deal fell through this month over financing issues.
Deikel led Fingerhut from 1974 to 1984 and again from 1990 to 1999. When Federated Department Stores bought Fingerhut for $1.7 billion in 1999, Deikel’s holdings in Fingerhut were about $80 million, according to news reports.
On May 16, Federated Department Stores received a bid from Petters and Deikel for “certain assets” of Fingerhut. The two had signaled interest in a purchase shortly after the announcement was made that Federated would liquidate Fingerhut.
Network
