Macy’s Consolidation Hurts Finlay
New York Finlay Enterprises Inc., which operates Bailey Banks & Biddle and other jewelry stores, said Thursday 94 of its 316 locations in Macy's Inc. will close as the department store operator consolidates.
Macy's on Wednesday said it will consolidate regional headquarters and that its Minneapolis, St. Louis and Seattle headquarters will be consolidated into offices in New York, Atlanta and San Francisco, respectively.
Licensing agreements at 57 locations in Macy's North stores and 37 agreements at Macy's Northwest stores will not be renewed, Finlay said. The agreements will expire on Jan. 31, 2009.
In fiscal 2007, the locations at Macy's North and Northwest had revenue of about $120 million, out of $338 million total revenue from all of Finlay's Macy's locations.
"While we are disappointed with the prospect of losing a portion of our Macy's business in January 2009, we will retain 222 Macy's locations and all of our Bloomingdale's locations," Arthur E. Reiner, company chairman and chief executive, said in a statement.
Separately, Finlay said same-store sales fell 6.4% in the fourth quarter.
Finlay operates about 794 stores (mostly as in-store jewelry departments in department stores) including 69 Bailey Banks & Biddle, 32 Carlyle and five Congress specialty jewelry stores