Fingerhut has informed employees that some employees will be placed on leave with full pay and benefits as the catalog prepares for a sale or liquidation.
The memo, sent out Monday by Fingerhut CEO Michael Sherman, said that “we mailed out what may be the last Fingerhut catalog, and are beginning a wind down of the business,” said Ben Saukko, spokesperson for the Minnetonka, MN, cataloger. “Because of this, the workload has lightened” and some employees will be put on leave.
The catalog was mailed Jan. 14.
Parent Federated Department Stores Inc. announced on Jan. 16 that it was closing the catalog unless a buyer was found.
Four potential buyers have been referred to Federated’s investment banker, Credit Suisse First Boston. They include Minneapolis businessman Paul Ellarby; Peter Lytle, a business turnaround specialist from Wayzata; Tom Petters, owner of Petters Cos. and Redtag Inc., in Eden Prairie; and an unnamed group of New York investors.
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