Deikel makes back-up bid for Fingerhut

The likelihood of Federated Department Stores selling its Fingerhut Cos. subsidiary has increased significantly now that there’s another offer on the table. After Cincinnati-based Federated announced on Feb. 21 that it signed a nonbinding letter of intent with Wayzata, MN-based Business Development Group Acquisitions (BDGA) to acquire Fingerhut, former Fingerhut CEO Ted Deikel and Eden Prairie, MN-based wholesaler Tom Petters revealed that they made a separate offer to Federated the same day.

Under the nonbinding letter of intent, Federated is free to entertain other offers for Minnetonka, MN-based Fingerhut; BDGA must notify Federated in early March of its intent and ability to proceed with the acquisition. The offer from Deikel and Petters will be good until March 8.

In more good news for Fingerhut employees, BDGA leader Peter Lytle said on Feb. 22 that he’ll try to preserve as many jobs as possible if he emerges as the new owner of the 54-year-old low-end general merchandise catalog. While Lytle said some restructuring may be necessary, if employees must be laid off he aims to make the layoffs temporary. Federated had announced last month that it would shut down Fingerhut and lay off its 6,000 employees in Minnesota and Tennessee if it couldn’t find a buyer.

Partner Content

The Gift of Wow: Preparing your store for the holiday season - Netsuite
Being prepared for the holiday rush used to mean stocking shelves and making sure your associates were ready for the long hours. But the digital revolution has changed everything, most importantly, customer expectations. Retailers with a physical store presence should be asking themselves—what am I doing to wow the customer?
3 Critical Components to Achieving the Perfect Order - NetSuite
Explore the 3 critical components to delivering the perfect order.
Streamlining Unified Commerce Complexity - NetSuite
Explore how consolidating multiple systems through a cloud-based commerce platform provides a seamless experience for both you, and your customer.
Strategies for Maximizing Mobile Point-of-Sale Technology - NetSuite
Learn the top five innovative ways to utilize your mobile POS technology to drive customer engagement, increase sales and elevate your brand.