Finlay Enterprises, Inc. has signed a three year agreements with Federated Department Stores, Inc. to operate the fine jewelry departments for four Macy’s divisions.
The Macy’s stores covered in the agreement are stores in which Finlay currently operates, Macy’s South, Macy’s Midwest (currently Famous Barr), Macy’s North (currently Marshall Field’s), and Macy’s Northwest. The new agreements were negotiated as a result of Federated’s recent acquisition of The May Department Stores Company and the merged companies’ subsequent divisional realignment.
The new agreement runs through January 31, 2009, which is one year longer than the term of the previous contract, Finlay said in a statement. Currently, 316 stores are covered by the agreement, which has substantially the same rent terms as the prior contract. In addition, the new agreement eliminates all non-compete provisions from the previous May Company contracts that required Finlay to obtain May Company’s permission before opening a department or store within a ten mile radius of a May Company store.
“We are enthusiastic about moving forward with the newly-structured Macy’s divisions and working with them to create an exciting and successful business,” said Arthur E. Reiner, Chairman and CEO. “In addition, the elimination of the non-compete provisions marks an important step in giving us the opportunity to expand our business and diversify beyond the traditional department store sector.”
These agreements have no impact on the Bloomingdales or Lord & Taylor divisions whose contracts, which cover a total of 88 doors, currently run through February 3, 2007. In 2004, the company, which is the largest operator of licensed fine jewelry departments in department stores in the Unites States, achieved sales of approximately $465 million from the six Federated divisions with which it now does business.