Federated announces intent to explore options for specialty store operations

Business Wire, June 14, 1995

CINCINNATI--(BUSINESS WIRE)--June 14, 1995--Federated Department Stores, Inc. said today that as part of its previously announced intent to evaluate options for specialty store operations during 1995, the company will begin exploring the option of selling its Aeropostale and Charter Club national specialty store operations to a buyer interested in tapping the full potential of those retail outlets.

``Federated's primary focus is on running premier department stores, which is a much different business than specialty retailing,'' Allen Questrom, Federated's chairman and chief executive officer, said in explaining the company's decision. ``For this reason, we have decided to explore what interest there may be on the part of others in acquiring these stores.

``Aeropostale and Charter Club are successful businesses that certainly could be retained and operated as part of Federated, and ultimately we may find that doing so is the best option for us,'' Questrom said. ``This process is intended to help us make an informed decision on what is in the best interests of the company and its shareholders, as well as what may be in the best interests of these fine stores.''

Merrill Lynch has been retained by Federated to assist in the exploratory sale process.

Aeropostale and Charter Club are headquartered in New York, and together operate 128 stores -- 30 Charter Clubs and 98 Aeropostales -- in 20 states and the District of Columbia. The specialty stores, which were acquired by Federated in its December 1994 acquisition of R.H. Macy & Co., posted 1994 sales of $128.4 million.

In addition to the intent to explore market interest in its specialty store operations, Federated also announced today that Richard Crystal, currently chairman of the specialty store division and Macy's Product Development (MPD), will resign his position with the company as of July 31.

Federated, with corporate offices in Cincinnati and New York, is one of the nation's leading department store retailers, with operations in 35 states and annual sales of more than $14 billion.

CONTACT: Federated Department Stores Inc., Cincinnati

Media - Carol Sanger, 513/579-7764

Investor - Susan Robinson, 513/579-7780