[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]

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)  
> 727-2543
>
>
> 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  
> competition."
>
>         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  
> today.
>
>         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  
> Maryland.
>
>         Assistant Attorneys General Mary B. Freeley and Jeffrey S.  
> Shapiro of AG Reilly's Consumer Protection and Antitrust Division  
> are handling this case.
>
> ###