[IMC-Boston-Dispatch] Fwd: AGS REACH MULTI-STATE ANTITRUST
AGREEMENT REQUIRING RETAIL RIVALS TO TAKE OVER SPACE
CURRENTLY OCCUPIED BY FILENE'S AND MACY'S
News at JamaicaPlainGazette.com
news at jamaicaplaingazette.com
Tue Aug 30 10:58:20 PDT 2005
Begin forwarded message:
> From: Alexandra.Bauermeister at ago.state.ma.us
> Date: August 30, 2005 12:16:23 PM EDT
> To: Alexandra.Bauermeister at ago.state.ma.us
> Subject: AGS REACH MULTI-STATE ANTITRUST AGREEMENT REQUIRING RETAIL
> RIVALS TO TAKE OVER SPACE CURRENTLY OCCUPIED BY FILENE'S AND MACY'S
> NEWS RELEASE
> FOR IMMEDIATE RELEASE CONTACT: SARAH NATHAN
> August 30,
> 2005 (617)
> AGS REACH MULTI-STATE ANTITRUST AGREEMENT REQUIRING RETAIL RIVALS
> TO TAKE OVER SPACE CURRENTLY OCCUPIED BY FILENE'S AND MACY'S
> Agreement promotes consumer choice and competition in the wake of
> Filene's/Macy's Merger
> BOSTON - Corporate owners of Filene's and Macy's department
> stores have agreed to a settlement with Massachusetts and four
> other states aimed at maintaining competition and choice for
> consumers in the wake of the recent retail mega-merger, Attorney
> General Tom Reilly announced today.
> "Filene's has been a shopping destination for generations.
> While it will be sad to see it go, it's important that consumers
> have choices among department stores here in Massachusetts," AG
> Reilly said. "This agreement allows for the merger to go forward
> while at the same time protecting consumers' right to choice and
> The agreement with Federated Department Stores, Inc., and
> the newly-acquired May Department Store Company, requires the
> retail corporation to allow rivals to fill the void created by the
> department store merger. Under the terms of the agreement reached
> by AG Reilly and four other state Attorneys General, Federated
> must divest overlapping stores to competing retailers in seven
> Massachusetts locations.
> The seven stores that Federated will be required to sell in
> Massachusetts are:
> • Macy's or Filene's in Downtown Crossing in Boston
> • Macy's at the Southshore Mall in Braintree
> • Macy's at the Westgate mall in Brockton
> • Filene's at the Burlington Mall in Burlington
> • Filene's at the Cape Cod Mall in Hyannis
> • Macy's at the Natick Mall
> • Macy's at the Northshore Mall in Peabody
> According to Federated, each of the stores it will continue
> to operate in these locations and across the country will be under
> either the Macy's or Bloomingdale's banner.
> Under the terms of the settlement, Federated will be
> required to sell overlapping Macy's or Filene's stores in five mall
> locations in Braintree, Brockton, Burlington, Hyannis and Peabody
> for use by a competing department store if any such retailer or
> mall developer is interested in the location and submits a
> commercially reasonable offer for the location. The objective is to
> allow for a new department store, not operated by Federated, to
> open in these locations. The competing department store may be a
> retailer not currently operating in the state, and under the
> agreement could include, among other stores, Nordstrom, Dillards,
> or Neiman Marcus.
> The settlement also requires that Federated use
> commercially reasonable efforts to divest either the Macy's or the
> Filene's in Downtown Crossing in Boston as well as the Macy's in
> the Natick Mall. Under the agreement, the expansion of the Natick
> Mall is expected to proceed as planned.
> The agreement between the AGs and Federated is designed to
> ensure that Federated does not monopolize the department store
> space in any given mall. The AGs contend in the agreement that the
> department stores operated by Federated and May "often comprise
> most or all of the conventional, full-service department stores
> within particular shopping centers, malls or other shopping areas.
> Such department stores offer consumers a distinctive combination of
> product choice, service and an appealing shopping experience that
> is not matched by smaller, more specialized retailers or by large
> discount stores."
> Earlier this year, Federated, the parent company of Macy's
> and Bloomingdale's, announced plans to acquire the May Company,
> which operates Filene's and Lord & Taylor. The merger was finalized
> The Federal Trade Commission, which worked with AG Reilly's
> office and the other state Attorneys General in reviewing the
> merger, took no action with respect to the merger.
> The agreement with Federated was by AG Reilly and state
> Attorneys General from New York, California, Pennsylvania and
> Assistant Attorneys General Mary B. Freeley and Jeffrey S.
> Shapiro of AG Reilly's Consumer Protection and Antitrust Division
> are handling this case.
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