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Federated Department Stores Sells Lord & Taylor to NRDC Equity Partners for $1.2 Billion

Strategic Insights

— 2 min read

Federated Department Stores, Inc., the parent company of Macy's and Bloomingdale's, has agreed to sell its iconic Lord & Taylor department store chain to NRDC Equity Partners LLC, a partnership between Apollo Real Estate Advisors and National Realty & Development Corp., for $1.195 billion. The sale includes 48 Lord & Taylor stores, including the flagship store on Manhattan's Fifth Avenue, as well as a distribution center in Wilkes-Barre, Pa. NRDC plans to run Lord & Taylor as a specialty department store chain and retain the current management team, including CEO Jane Elfers.

Key Takeaways:

  • Federated Department Stores is selling its Lord & Taylor department store chain to NRDC Equity Partners LLC for $1.195 billion.
  • The sale includes 48 Lord & Taylor stores, including the flagship store on Manhattan's Fifth Avenue, and a distribution center in Wilkes-Barre, Pa.
  • NRDC plans to run Lord & Taylor as a specialty department store chain and retain the current management team, including CEO Jane Elfers.
  • Federated announced in January that it was putting Lord & Taylor on the block because it didn't fit with its expansion strategy for its larger Macy's and Bloomingdale's chains.
  • Lord & Taylor has been struggling in recent years, with its performance slipping due to fierce competition and a shift towards lower-priced merchandise.
  • The department store chain, founded in 1826, had established a reputation for offering American classic design but lost its highbrow appeal in the 1990s.
  • NRDC's acquisition of Linens 'n Things in partnership with Apollo Management in February indicates the company's strategy of acquiring great companies with a strong brand and a valuable real estate platform.

Statistics:

  • $1.195 billion: The sale price of the Lord & Taylor department store chain.
  • 48: The number of Lord & Taylor stores included in the sale.
  • 180 years: The history of the Lord & Taylor department store chain.
  • 2003: The year Lord & Taylor closed 32 underperforming stores and began a makeover aimed at bringing back its luster.
  • 10-story, 600,000-square-foot: The size and location of the flagship Lord & Taylor store on Fifth Avenue in Manhattan.

Sources:

  • Federated Department Stores, Inc. press release: agreement to sell Lord & Taylor to NRDC Equity Partners LLC.
  • Associated Press: "Federated to Sell Lord & Taylor to NRDC Equity Partners".
  • Business Journal: "Apollo Real Estate Advisors partners with National Realty & Development Corp. to buy Linens 'n Things".
  • AP Photo: MARK LENNIHAN/Associated Press

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