Marshall Field Chairman, President Plan to Resign

The two executives who guided Marshall Field & Co. to prosperity as profits declined at other department stores announced Thursday that they will resign when Dayton Hudson Corp. completes its takeover of the Chicago retailer.

The resignations of Field Chairman Philip B. Miller and President Burnett W. Donoho came a day after Dayton Hudson announced that it would consolidate Field’s administrative and buying operations in Minneapolis. The move could result in the loss of most of the 1,700 jobs at Field’s corporate headquarters.

“We will be working with the Marshall Field’s and Dayton Hudson management teams to insure a smooth transition of ownership for our associates and customers,” Miller said.

A week ago, Minneapolis-based Dayton Hudson announced its purchase of Marshall Field for $1.04 billion, beating out several suitors, including a group of Field’s managers led by Miller. Dayton Hudson expects to complete the deal within two months.

BAT Industries PLC of Britain put the 24-store chain up for sale last year as part of its restructuring to fight a takeover attempt by corporate raider Sir James Goldsmith. On Monday, Goldsmith ended his takeover efforts.

In a letter Wednesday to Marshall Field’s employees, Dayton Hudson said it will offer jobs in Chicago and Minneapolis to certain Marshall Field’s central office employees to fill openings in a new organization. A Marshall Field’s regional organization, focused on customer service and community involvement, will be based in Chicago, the letter said.

Of the 1,700 corporate employees, 350 to 400 are in the merchandise group, including buyers and managers. Remaining jobs are largely administrative and operational. Miller said he believes that about 1,450 employees in Field’s central organization will be let go.

Miller said he had discussions with Dayton Hudson about staying with the company, but it became apparent to him it was time to move on. Under the consolidation plan, “the responsibilities are so changed I don’t feel I can be effective,” he said during a news conference.

“I don’t have any plans right now. This has come about very quickly.”

Miller said he has already received inquiries about other employment, but he declined to provide details.

Miller arrived at Marshall Field in 1983 from Dallas-based Neiman Marcus, where he was president.