Federated Completes Sale of Credit Card Receivables
Federated Department Stores Inc. July 17 said it has completed the final in a series of transactions in its planned sale of Federated and May Company credit card receivables to Citigroup.
The transaction completed included the remainder of the May Company portfolio. The sale yielded total proceeds of approximately $1 billion.
Federated, Cincinnati, has now completed the sale of all Federated and May Co. customer credit receivables, which in total have produced proceeds of approximately $4.6 billion.
Federated's Financial, Administrative and Credit Services (FACS) division, headquartered in suburban Cincinnati, will continue to manage key customer service functions.
No job losses are expected as a result of the transactions. Also, no changes are planned to Federated's loyalty reward programs, and customers can continue to use their cards in the same manner.