Saks to Sell 9 Stores to Competitor May

Saks Inc. agreed to sell nine of its Proffitt’s, Parisian and McRae’s stores in Southern states to rival May Department Stores Co. for about $310 million. The stores, which Saks bought from Dillard’s Inc. in 1998, have annual sales of about $210 million. Birmingham, Ala.-based Saks wants to focus on its most profitable locations as it prepares to separate its department store business from its upscale Saks Fifth Avenue business. Saks said it will use proceeds from the sale to reduce debt and buy back stock. Most store employees would be offered jobs with May, which plans to reopen the stores under the Hecht’s and Foley’s names. Saks shares rose 87 cents to close at $13.27, and St. Louis-based May closed off 10 cents at $36.89, both on the New York Stock Exchange.