Bullock’s Executives Said to Be Out in Big Reshuffling by Macy’s
R. H. Macy & Co. reportedly is reshuffling management at Bullock’s and Bullocks Wilshire even though its $1.1-billion purchase of the well-known Southern California chains is still days from completion.
According to an industry source, James E. Gray, 48, chairman of the 22 Bullock’s department stores, and Terry Lundgren, 36, president of the seven-unit Bullocks Wilshire specialty store operation, are expected to leave their positions as part of an internal reorganization at Macy’s.
Frank Doroff, 38, president of Bullock’s, reportedly has been asked to stay at his post in “a caretaker kind of situation” but “is not happy about it,” the source said.
Observers view that situation as ironic since Doroff started his career at Macy’s and worked up the ranks to senior vice president of apparel for Macy’s New York, working at times directly for Macy’s Chairman Edward S. Finkelstein.
More Dismissals Seen
Doroff reportedly was flying back to California from the Cincinnati headquarters of Federated Department Stores, owner of Bullock’s, late Thursday night and could not be reached. He joined Bullock’s in 1983 as senior vice president of ready-to-wear merchandise.
According to the industry source, the elimination of top management jobs at the two operations could presage a bloodletting at the 1,000-employee Bullock’s headquarters in downtown Los Angeles.
Bullock’s officials have been quoted recently as saying--wishfully, it now appears--that they expected little upheaval once Macy’s became the owner. However, the industry source said: “Macy’s is a highly professional company with highly regarded people. . . . It’s a matter of putting your own team in to run the business the way you want to run it.”
A substantial number of other jobs are expected to be eliminated throughout the Macy’s organization as the merchant begins to cut costs to help cover the debt resulting from the purchase of Bullock’s, Bullocks Wilshire and I. Magnin.
Reportedly in Line
Campeau Corp., the Toronto developer that is buying Federated, agreed to sell the three choice California chains to Macy’s. The deal induced Macy’s to drop out of the bidding war. Campeau has said its total costs for the purchase, which is expected to be completed next Thursday, will approach $8.8 billion.
Under the Macy’s reorganization, the Bullock’s division will report to Macy’s Atlanta operation. That unit reportedly will be headed by Robert Friedman and Rudolph Borneo, who now hold the jobs of chairman and president, respectively, of Macy’s New Jersey.
In a further major change, Macy’s reportedly has named Rosemarie Bravo, senior vice president of merchandising at Macy’s New York, to be chairman of the 26-store I. Magnin specialty chain. She replaces Barbara Bass, who sources say resigned as head of the San Francisco unit earlier this week.
Also, Macy’s New York and Macy’s New Jersey, formerly Bamberger’s, will be consolidated under Macy’s New York’s current management, Arthur E. Reiner, chairman, and Herbert Yalof, president.
