The new owner of Broadway Stores Inc. said Friday that it will convert 40 of the chain's stores--or nearly half--into Macy's and sell nine more to Sears, Roebuck & Co.
Federated Department Stores, which acquired the Los Angeles-based Broadway chain a month ago, also announced that it is seeking buyers for 10 more stores. If no buyers are found, Federated plans to close them early next year.
The fate of another 21 stores remains undecided. As many as six will become Bloomingdale's, and the others could be sold, closed or retained and converted. A decision will be made by the end of the year, Federated said.
The announcement answered many of the remaining questions about the fate of the properties of Broadway Stores, operator of 82 Broadway, Emporium and Weinstock's stores in California and other western states. Federated had said earlier that it would convert some to Macy's and Bloomingdale's and sell or close the rest.
Of the 40 stores Federated plans to turn into Macy's, 31 carry the Broadway name, and of those, 22 are in Southern California. Also to be converted are Broadway stores in Arizona and Nevada and New Mexico, along with nine Emporium and Weinstock's stores operated by Broadway Stores in Northern California.
Of the nine stores to be sold to Sears, six are Broadway sites in Southern California. The terms of the deal with Sears were not disclosed.
Of the 10 additional stores Federated said it would close if buyers aren't found, three are in Southern California. Separately, two stores in Northern California had previously been scheduled for closure.
The stores facing closure if buyers aren't found employ about 1,500 people. Workers affected by store closings will be offered severance packages, job search assistance and the opportunity to apply for positions at other Macy's stores, Federated said.
The profitability and location of each site were the major factors in Federated's decisions on which stores to keep, Federated spokeswoman Carol Sanger said.
"We looked at a store's current performance and future profitability and how it fit into the existing store mix," Sanger said.
However, Sanger said Federated has not yet completed its assessment of 21 other stores--including 10 in Southern California. Of those, four to six will become Bloomingdale's--marking the entrance of that upscale retailer into California.
Among the stores in limbo are those in such high-profile Broadway locations as the Beverly Center and Century City. Another store on Federated's undecided list--a Broadway at Sherman Oaks Fashion Square--will be converted to a Bloomingdale's if the city approves a plan to expand the store site, mall officials have said.
The acquisition of Broadway Stores is part of Federated's plan to expand in the West and further raise the profile of its three main chains--Macy's, Bloomingdale's and Sterns, a chain of East Coast department stores. Federated last month confirmed that it would convert its 21-store Bullock's chain into Macy's stores.
(BEGIN TEXT OF INFOBOX / INFOGRAPHIC)
Soon to Be Macy's
Federated Department Stores completed its acquisition of Broadway Stores on Oct. 11. Federated said it will retain many of the 82 stores in the Broadway chain, sell others and decide the fate of 21 more by the end of the year. Of the 40 stores to be converted to Macy's, 22 are in Southern California:
Santa Anita Fashion Park, Arcadia
Valley Plaza, Bakersfield
Plaza Camino Real, Carlsbad
Fox Hills Mall, Culver city
Los Cerritos Center, Cerritos
Chula Vista Mall
North County Fair, Escondido
Inland Center, San bernardino
Laguna Hills Mall
Downtown Los Angeles
Fashion Island, Newport Beach
Tyler Mall, Riverside
Fashion Valley, San Diego
Horton Plaza, San Diego
La Jolla, San Diego
Paseo Nuevo, Santa Barbara
Santa Monica Place
The Oaks, Thousand Oaks
Buenaventura Fashion Center, Ventura
For a list of Broadway stores that Federated will sell to Sears and the stores whose fates are still in question, see D2.
Source: Federated Department Stores
More on Broadway
Broadway Stores to be Sold to Sears
Federated is selling nine stores in the Broadway Stores chain to Sears. Of those, six are in Southern California:
Topanga Plaza, Canoga Park
Stonewood Center, Downey
Los Altos Center, Long Beach
Whittwood Mall, Whittier
West Covina Fashion Plaza
The Plaza Pasadena
Broadway Stores to be Closed
Federated is seeking buyers for 10 other stores in the Broadway chain and plans to close those sites by early 1996. Three of those stores are in Southern California:
Mall of Orange
Puente Hills, City of Industry
Broadway Stores in Limbo
Federated said it has yet to make a determination on the future of 21 other former Broadway stores, but expects to do so before the end of the year. Some of the 21 could be retained as Macy's and some could be converted to Bloomingdale's. Of the total, 10 are in Southern California:
Crystal Court, Costa Mesa
Grossmont Center, La Mesa
Century City Shopping Center
Northridge Fashion Center
Sherman Oaks Fashion Square
Del Amo Fashion Ctr., Torrance