Fingerhut Deal Could Be Imminent
A wire service report Tuesday stated that a group led by Peter Lytle could complete the purchase of the cataloger from parent company Federated Department Stores Inc., Cincinnati, this week.
The managing partner of Business Development Group, Wayzata, MN, reportedly said financing agreements are "pretty much in place" and stated that the operation would be leaner. He did not specify the number of jobs that would be eliminated.
BDG, through its investment subsidiary, Business Development Group Acquisitions Inc., signed a nonbinding letter of intent a little more than a month ago to purchase Fingerhut.
Federated announced in January that it would close down Fingerhut, Minnetonka, MN, if a buyer could not be found.
Details of the BDG offer have not been revealed. In January, Federated issued required 60-day layoff notices to most of Fingerhut's 6,000 workers. However, Federated notified the Union of Needletrades, Industrial and Textile Employees last week that its members would not be laid off before April 7, as the company continues talks with BDG.