Broadway to Convert 40 in Store Chain to Macy's : Retailing: New owner Federated also plans to sell nine sites to Sears and seeks buyers for 10 more facing closure in early 1996.

By GEORGE WHITE

Nov. 18, 1995 12 AM PT

TIMES STAFF WRITER

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.

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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

Brea Mall

Plaza Camino Real, Carlsbad

Fox Hills Mall, Culver city

Los Cerritos Center, Cerritos

Chula Vista Mall

North County Fair, Escondido

Glendale Galleria

Inland Center, San bernardino

Laguna Hills Mall

Downtown Los Angeles