Federated sheds another part of Fingerhut

Two weeks after selling most of the assets of its Fingerhut catalog, Federated Department Stores found a buyer for Fingerhut’s credit-card receivables. On June 26, Federated announced that it would sell the receivables, worth about $1.2 billion, to Atlanta-based credit-card company CompuCredit Corp. The deal also includes $450 million in receivables-backed debt that has been issued by the Fingerhut Master Trust. Terms of the deal were not disclosed.

CompuCredit intends to retain 800 Fingerhut employees based at Fingerhut’s credit facilities in St. Cloud and Monticello, MN. Fingerhut spokesperson Ben Saukko says the deal is expected to close in mid-July and is subject to final negotiation of a definitive agreement. In a release, Federated said the disposition and monetization of Fingerhut’s assets will generate about $1.1 billion-$1.3 billion of after-tax cash proceeds, net of one-time costs.

According to Saukko, Federated is sorting through numerous offers for Fingerhut’s remaining subsidiaries, which include the Arizona Mail Order, Figi’s, and Popular Club catalogs. Earlier this month, Federated reached a definitive agreement to sell Fingerhut’s name, inventory, Website, and other assets to FAC Acquisitions, led by Thomas Petters and former Fingerhut CEO Ted Deikel.