Batus to Sell Gimbels and 3 Other Department Stores

Batus Inc., a $3.5-billion U.S. subsidiary of a British retailing and financial-services firm, announced a major restructuring Monday under which it will sell Gimbels, Kohl’s, Frederick & Nelson’s and Crescent department stores, reducing retail sales operations by 40%.

The Louisville, Ky.-based unit of BAT Industries PLC of London said in a press statement that it will concentrate on expanding five other retail businesses: Saks Fifth Avenue, Marshall Field’s, Ivey’s, Breuners and Thimbles.

“The strategy which we have developed is to concentrate our financial and management resources on businesses which have a very strong market position and are capable of high growth and profitability,” Henry F. Frigon, president and chief executive of Batus, said in the statement.

A timetable and cost for the restructuring was not disclosed, but Frigon said the businesses to be discarded will be sold “as going concerns, and until then we shall manage them as usual.”

Batus owns 41 Saks stores, 21 Marshall Field’s, 25 Iveys, 58 Breuners, 31 Thimbles, 36 Gimbels, 39 Kohl’s, 15 Frederick & Nelson’s and three Crescents, company spokesman Thomas Humber said.

The press statement said the businesses to be retained represent total annual sales exceeding $2 billion, with $150 million in profits and a work force of more than 40,000 people.

The total annual sales of Batus’ retailing operations is $3.5 billion, the statement said.