[HSVTiger]

someone should start a retail museum of great stores destroyed by being bought by someone else.
So far no stores in Alabama have been targeted

Employees at Parisian at Hamilton Place Mall(Chattanooga) were told Wednesday the store may close by the end of the year because the new owner, Belk Inc., has not been able to sell it.

Belk, also on Wednesday, announced plans to sell 11 Parisian stores it recently bought from Saks Inc., including the one at Hamilton Place Mall.



Belk officials said Pennsylvania department store chain Bon-Ton Stores Inc. is buying several of the locations.

Belk plans to sell the others by the end of the year, it was stated.

Belk completed its $285 million acquisition of 38 Parisian stores earlier this month.

Belk CEO Tim Belk said the decision to sell some stores was based on whether there were nearby Belk stores and on growth potenti

[HSVTiger]

and in Central Alabama

By David Irvin
Montgomery Advertiser




Prattville city officials are cautiously optimistic that a massive retail shopping center being built there will retain its department store anchor after Belk Inc. buys competing retailer Parisian.

In May, Parisian announced it would anchor the new 900,000-square-foot High Pointe Town Center in Prattville with a new department store. It was unclear Thursday whether the Prattville department store project would survive the $285 million acquisition.

A news release from Belk did not mention the Prattville project, though it did cite a store under construction in Trussville. According to Belk's announcement, all Parisian stores will come under the Belk brand by late 2007.

Prattville Mayor Jim Byard said he isn't worried about the news. Byard speculated that Prattville would either get a new Belk store at High Pointe or a major expansion at its present location. Still, he says, "this is very new information" and "we are working to digest the full impact."

Neither the developers of High Pointe nor company officials at Belk could be reached for comment.

The Parisian store in Montgomery will be transformed into a Belk store about a year from now. Owen Aronov, the owner of Eastdale Mall where Parisian is located, believes this is good news.

"They are a terrific retailer who will be a wonderful addition for our customers at Eastdale Mall," Aronov said. "Belk operates many of the finest department stores in the South, and I'm certain our customers in Montgomery and throughout the Alabama trade area will find their merchandise mix very appealing."

Some customers, like Breda Stallworth, aren't so sure. She's been a Parisian customer for 18 years -- first in Cincinnati and later when she moved to Montgomery.

"I'll have to give Belk a chance," Stallworth said, but, "I'm not thrilled about it."

Having shopped at both retailers, Stallworth believes Parisian offers higher quality clothing, and, "If you buy nice clothes, they don't go out of style, I don't care how many styles come in," she said.

Aronov said he doesn't anticipate customers will change their shopping habits because of the acquisition and expects Belk to do well in the Parisian location.

Besides Prattville, Belk operates stores in Selma and Auburn. The acquisition is expected to close by the third quarter of this year pending antitrust approval. At that point, Belk will operate some 315 store in 19 states, the company said in a statement.

[stgeorge]

Here's a release from Bon-Ton. Wondering if they'll keep the Parisian name or if Belk has the rights to it... Who is the other buyer?

THE BON-TON TO ACQUIRE 5 PARISIAN DEPARTMENT STORE LOCATIONS FROM BELK, INC.

York, PA, October 25, 2006 – The Bon-Ton Stores, Inc. (NASDAQ: BONT) today announced it has entered into a definitive asset agreement with Belk, Inc. (“Belk”) to purchase four Parisian department stores and the rights for the construction of a fifth Parisian store. Bon-Ton anticipates completing the transaction with Belk on October 30, 2006. Bon-Ton will continue operating the Parisian stores and, subject to the agreement, will offer employment to store associates.

Bon-Ton will pay $22 million in cash for the assets and assume specific liabilities. The four Parisian locations generated net sales in fiscal 2005 in excess of $90 million. Upon completion of the transaction, Bon-Ton will operate a total of 282 stores in 23 states with estimated annual net sales of $3.4 billion. The transaction is not anticipated to affect Bon-Ton’s financial performance in fiscal 2006, but is expected to be accretive to earnings in fiscal 2007.

The four existing store locations to be acquired by Bon-Ton are Laurel Park Place, Livonia, Michigan, 148,800 square feet; Meadowbrook Village, Rochester Hills, Michigan, 120,500 square feet; Fairfield Commons, Beavercreek, Ohio, 130,199 square feet; and Circle Centre, Indianapolis, Indiana, 144,000 square feet. The fifth location, Partridge Creek, Clinton Township, Michigan, 120,000 square feet, will begin construction in fiscal 2006 and is scheduled to open in October 2007. Laurel Park Place and Fairfield Commons are regional malls, Meadowbrook Village and Partridge Creek are lifestyle centers, and Circle Centre is a downtown mall.

“We are extremely pleased with the opportunities that this acquisition affords our Company. These Parisian stores fit geographically into our existing markets, strengthen our position in the Midwest and add to our customer base,” said Bud Bergren, President and Chief Executive Officer of Bon-Ton.

During a transition period, Belk will provide Bon-Ton with specified support services including information technology, credit services, and other back office support functions for the four Parisian stores.

“At present, we will remain focused on our current business in order to ensure that our customers’ needs in all our locations are met through the important holiday shopping season,” Mr. Bergren said. “We look forward to welcoming the Parisian associates to the Bon-Ton team and integrating their strong base of loyal customers and outstanding reputation for community service which are integral to the success of our Company.”

The transaction is subject to customary closing conditions.

The Bon-Ton Stores, Inc. operates 271 department stores and seven furniture stores galleries in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger’s and Younkers nameplates. The stores offer a broad assortment of brand-name fashion apparel and accessories for women, men and children, as well as cosmetics, home furnishings and other goods. For further information, please visit the investor relations section of the Company’s website at www.bonton.com/investor/home.asp.

[stgeorge]

Here's a release from Bon-Ton. Wondering if they'll keep the Parisian name or if Belk has the rights to it... Who is the other buyer?

THE BON-TON TO ACQUIRE 5 PARISIAN DEPARTMENT STORE LOCATIONS FROM BELK, INC.

York, PA, October 25, 2006 – The Bon-Ton Stores, Inc. (NASDAQ: BONT) today announced it has entered into a definitive asset agreement with Belk, Inc. (“Belk”) to purchase four Parisian department stores and the rights for the construction of a fifth Parisian store. Bon-Ton anticipates completing the transaction with Belk on October 30, 2006. Bon-Ton will continue operating the Parisian stores and, subject to the agreement, will offer employment to store associates.

Bon-Ton will pay $22 million in cash for the assets and assume specific liabilities. The four Parisian locations generated net sales in fiscal 2005 in excess of $90 million. Upon completion of the transaction, Bon-Ton will operate a total of 282 stores in 23 states with estimated annual net sales of $3.4 billion. The transaction is not anticipated to affect Bon-Ton’s financial performance in fiscal 2006, but is expected to be accretive to earnings in fiscal 2007.

The four existing store locations to be acquired by Bon-Ton are Laurel Park Place, Livonia, Michigan, 148,800 square feet; Meadowbrook Village, Rochester Hills, Michigan, 120,500 square feet; Fairfield Commons, Beavercreek, Ohio, 130,199 square feet; and Circle Centre, Indianapolis, Indiana, 144,000 square feet. The fifth location, Partridge Creek, Clinton Township, Michigan, 120,000 square feet, will begin construction in fiscal 2006 and is scheduled to open in October 2007. Laurel Park Place and Fairfield Commons are regional malls, Meadowbrook Village and Partridge Creek are lifestyle centers, and Circle Centre is a downtown mall.

“We are extremely pleased with the opportunities that this acquisition affords our Company. These Parisian stores fit geographically into our existing markets, strengthen our position in the Midwest and add to our customer base,” said Bud Bergren, President and Chief Executive Officer of Bon-Ton.

During a transition period, Belk will provide Bon-Ton with specified support services including information technology, credit services, and other back office support functions for the four Parisian stores.

“At present, we will remain focused on our current business in order to ensure that our customers’ needs in all our locations are met through the important holiday shopping season,” Mr. Bergren said. “We look forward to welcoming the Parisian associates to the Bon-Ton team and integrating their strong base of loyal customers and outstanding reputation for community service which are integral to the success of our Company.”

The transaction is subject to customary closing conditions.

The Bon-Ton Stores, Inc. operates 271 department stores and seven furniture stores galleries in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger’s and Younkers nameplates. The stores offer a broad assortment of brand-name fashion apparel and accessories for women, men and children, as well as cosmetics, home furnishings and other goods. For further information, please visit the investor relations section of the Company’s website at www.bonton.com/investor/home.asp.

[stgeorge]

(Sorry about the double post)

[cwilson758]

They announced last night that they are closing Indy's other Parisian store, which is located in the Fashion Mall at Keystone at the Crossing. The Fashion Mall is by far Indiana's most-upscale mall and one of the better in the entire region. I have a friend that works at Simon (which owns the Fashion mall) and when Belk had originally purchased this last month, there were talks of the Belk name going on the store. Simon wasn't happy with this as Belk is not high-end and there were rumblings of the lease being pulled. Nordstrom, which has a downtown store, is interested in a second Indy location, so this may be a good fit as Saks is the other anchor of the Fashion Mall. Also, Neimen's have also expressed interest in the Indy market.

[AubieTurtle]

Bring back Pizitz!

Is High Pointe Town Center going to be yet another strip mall with a huge multiacre parking lot in front and all the buildings set back a quarter of a mile from the road? The developments along Cobbs Ford Road were pretty ugly the last time I was in Prattville. Sure, they put some nice treatments on the facades of the buildings to try to dress them up but I have to wonder what all of that will looking like five or ten years down the road. At least it's all getting built on the edge of town and they're not trying to tear down Prattville's unique downtown to make room for a megamart.

[James Owen]

Add Memphis to the list of Parisian stores closing (I knew this was going to happen):

http://www.commercialappeal.com/mca/business/article/0,1426,MCA_440_5097456,00.html

Collierville to lose Parisian
Store at Avenue Carriage Crossing to become a Macy's early next year

By Cathryn Stout
October 27, 2006

Say au revoir to Parisian.

After just more than a year at The Avenue Carriage Crossing in Collierville, the upscale department store will be closing its doors.

However, the store will don the Macy's moniker early next year.

Pete McClure, Carriage Crossing general manager, said the parent company of Macy's -- Cincinnati-based Federated Department Stores -- has agreed to buy 15-20 Parisians, including the Collierville store, from Belk Inc.

Federated officials declined to comment. Officials with Charlotte, N.C.-based Belk did not return phone calls.

The move comes on the heels of the deal by Birmingham, Ala.-based Saks Inc. to sell its 38 Parisian stores to Belk for $285 million. The sale was completed Oct. 2.

Collierville store employees learned at their morning staff meeting on Wednesday that the two-story, 130,000-square-foot store would no longer bear the Parisian logo.

That announcement coincided with Belk's announcement Wednesday that it was selling 12 Parisian stores nationwide. Five of the stores, in Michigan, Indiana and Ohio, will be sold to Bon-Ton Stores Inc. for $22 million.

The transaction is expected to close on Oct. 30.

The store did not disclose names of other potential buyers.

But Macy's is a good fit to take over the Parisian in Collierville, said Gary Myers, owner of The Gary Myers Co., a commercial real estate brokerage specializing in retail.

"I think it's natural for Macy's to go there," Myers said, saying that it would match the store up against competitor Dillard's.

In 2005 Dillard's moved its Hickory Ridge Mall store to Carriage Crossing, and the Macy's move raises questions about the future of the Macy's at Hickory Ridge.

With Macy's and Dillard's well established in the Memphis area, Myers called the closing of Parisian significant because it was a unique draw for Carriage Crossing.

"This is a big blow for them," Myers said. "The one thing that was most certainly different in that market was Parisian. That might stagger them slightly, but they will rebound."

The Collierville Parisian was most likely too costly to maintain because it's the only Belk's store in the area -- advertising and management expenses could not be spread out among other locations.

But Myers said the closing of Parisian should not be seen as a reflection of the overall performance of Carriage Crossing because at about 95 percent capacity, the $100 million shopping center has a good tenant mix.

As one of Carriage Crossing's flagship stores, Parisian has hosted designers and fund-raisers for local charities, and touts brands like Juicy Couture and Stuart Weitzman.

Parisian was among the first phase of stores that opened on Oct. 19, 2005.

Developed by Jim Wilson & Associates and Cousins Properties, the 600,000-square-foot "lifestyle center" has 75 stores and restaurants with plans for a 131-room Courtyard Marriott to be added soon.

-- Cathryn Stout: 529-2320

[nick1982]

Personally, here in Mobile I think it would be great if they possibly sold the Bel Air Mall store to Federated Department Stores. I would like to see Macy*s have a prescence in South Alabama.

[Leonard23]

Personally, Belk will be in for a big surprise when they realize they won't ever able to gain the high income clientele that frequents Parisian in markets like Atlanta, Nashville, and Birmingham. I can care less for Saks for selling Parisian knowing that the chain has higher gross sales than overall Saks Fifth Avenue chain and Belk for buying Parisian and eliminating the nameplate for their demographically confused nameplate. Stupidity is going to be the both of those chains downfall.

[HSVTiger]

Could be a similar plan in other citiesthat CBL has mall properties, this from Chattanooga:

Parisian At Hamilton Place To Close In Mid-February
posted December 18, 2006

The Parisian department store at Hamilton Place Mall will close in mid-February, store officials said.

CBL & Associates officials said they are in the final stages of arranging a new major tenant at the mall.

"We will be making an announcement in the near future," Debra Gibbs, of CBL, said.

A Parisian official said it has been speculated that a Dillard's home store may occupy the site.

The Parisian chain was bought by Belk Department Stores in August

[ScreamShatter]

Question: How many people who have posted about this topic have an MBA or graduated from a Top 20 Business School?

just curious...

[LSyd]

Question: How many people who have posted about this topic have an MBA or graduated from a Top 20 Business School?

just curious...

you're too cool for school, we know.

-

[Pillsbury Doughboy]

Oh, I was going to post something in this thread, but all I have is a History degree. :shrug:

[ScreamShatter]

you're too cool for school, we know.

-

:) Just trying to curve the Belk's bashing before it gets out of control. We all know what this thread is headed towards given the results of the other Belks/Parisian threads; thus, I propose skipping all of that before too many people begin telling us all the mistakes involved with this business deal. :)

[ScreamShatter]

Here is my business lesson for those who aren’t familiar with M&A:

Companies do not make impulsive mergers and acquisitions (M&A); these deals take months before finalization occurs. In this case, Belk’s most likely spent months and millions on research and surveys to make sure this deal would work, and some investment bankers slaved over the numbers to make sure they would match. While it’s easy to assume Belk’s is looking to move into a more upscale market that most likely isn’t the complete story. Maybe this deal helped Belk’s obtain a growth goal, gave them better financial leverage, or improved some of their ratios…we will never know fully know the strategy.

If Parisian was so successful, Saks would not have sold it. I’m not saying the chain did not have huge net sales or anything like that. What I am saying is that for some reason Saks felt Parisian was not aligning with the overall company strategy as well as they would have liked, otherwise they would have kept it. Parisian is a successful brand when standing alone, but maybe it did not gel well Saks. Maybe Parisian had more debt, and the Saks wanted to improve its Debt/Equity ratio. Maybe Saks felt that Parisian was in a more risky market; thus, they are expected to earn stockholders higher returns to compensate for the risk and they weren’t living up to those expectations. There could be thousands of reasons.

I’ve said this before and I’ll say it again, if Belk’s is planning on making over the brand, it is possible. Look at Apple Computers, Hyundai, Target, etc…as these are brands that have changed drastically over the past decade. It will not happen right away or over the next year…but if this is what the CEO has decided to do, I think Belk’s could drastically change as a brand over the next decade. Time will tell.

I tried to keep that simple. We all know I’m not the best with words, which is why I major in math (Finance). Class dismissed :)

[sabre0link]

It's Saks, not Sacks...

And I think most of the issues stem from... here in B'ham (where Saks is Headquartered), Parisian and Belk are on the same malls, same areas... OR in different areas. I've seen both.

I've also been in both stores...

Belk is on the upper end of my price range (semi-recent college graduate, single, female), and the one or two times I've been in the store(s), I didn't find anything that fit my taste... of course, i have a weird taste, but if I am going to spend $60 on a shirt, I better be able to wear it for more than one occassion.

I've been through Parisian as well... I tend to find things I like, but am quickly turned away when the 80% off rack is still $100, or I see a skirt that does make a statement... and it's at least $300...

Maybe it was the areas I was in (Belk in Prattville and at the Galleria in Hoover, and Parisian at Brookwood Village (Mountain Brook/Homewood area) and the Galleria (among other places as well)). Now... the two Belks I was in were different from each other, too... but again, I feel that was more of the area demographics than anything...

Now, let me see if I can find some of that BBA stuff floating around in my head...

Kress became K-mart. K-mart was bankrupt, and put a new CEO in charge. K-mart sold a lot of its properties off... Some locations were sold to Sears. Sears had been doing better recently, had just recently did a minor revamp of its stores, realigned things, etc. Keeping up with the times, basically. K-mart then did an odd thing....

They bought Sears.

Now the combined company is getting more focused and centered on what needs fixed...

Let's see if we can make this fit with Belk and Saks, in regards to Parisian. What you said is basically what it seems... Saks is trying to refocus. Look at its history... it sold off stores left and right... bought other stores, sold them off...

Here's a theory that just popped into my head... Saks acquired Parisian, got it going strong, and sold it off. Basically like people handle real estate... buy it at one price, fix it up, and sell it for many more times what they paid for, plus what they put into it.

Belk has gone on a recent buying spree (Proffit's, McRae's, Parisian, etc... mostly old Saks companies, as was discussed in another thread a few months ago... maybe on another forum...), assimilating their acquired brands under their name and brand.

And, of course.... I was on a tangent, and have seddenly lost my point. So I shall end this blabbery abrubtly.

Heh. :S

[ScreamShatter]

It's Saks, not Sacks...



Thanks. I edited my post.

Maybe I would know how to spell the name if I could afford to shop there...haha.

[sabre0link]

Thanks. I edited my post.

Maybe I would know how to spell the name if I could afford to shop there...haha.

heh...

Sorry, I live just above The Summit, and drive through there daily (it's the easiest route to get to 459 from my place.....) so I see the sign... I was amazed when I found out Saks was HQed in B'ham, and not NYC like I originally thought (like... 10 years ago or something). Hah.

Can't afford to shop there... kindda wish I could, but I haven't been in the store to even know what they have. heh. :\

[| BRAVO |]

I think it best we understand the history of mergers of Saks Inc over the years. As a former employee of the now defunct Eastwood Parisian store... I know this much...

Parisian was purchased by Proffits Inc many many years ago.

Proffits was based somewhere on the east coast and operated many brands including McCrae's, Proffitt's, Herbergers, Yonkers, etc.

For whatever reason the CEO moved Profitts Headquarters to Birmingham.

In 1998, while working at Parisian, Proffits Inc. purchases Saks which is headquartered in NY and took the name for obvious reasons.

That is how Saks is now headquarted in bham. It's not the original Saks.

Saks Inc operated successfully a few years before beginning the downward spiral. I jumped ship. Rumor has it the man at the CEO position supposedly fell to the level of store manager somewhere in the bham metro.
Saks Inc began selling off stores to stay afloat. We have reached the end of the rope. Parisian was the last. All that's left is Saks Department Stores.

Check out the link:
http://en.wikipedia.org/wiki/Parisian

[ScreamShatter]

I think it best we understand the history of mergers of Saks Inc over the years. As a former employee of the now defunct Eastwood Parisian store... I know this much...

Parisian was purchased by Proffits Inc many many years ago.

Proffits was based somewhere on the east coast and operated many brands including McCrae's, Proffitt's, Herbergers, Yonkers, etc.

For whatever reason the CEO moved Profitts Headquarters to Birmingham.

In 1998, while working at Parisian, Proffits Inc. purchases Saks which is headquartered in NY and took the name for obvious reasons.

That is how Saks is now headquarted in bham. It's not the original Saks.

Saks Inc operated successfully a few years before beginning the downward spiral. I jumped ship. Rumor has it the man at the CEO position supposedly fell to the level of store manager somewhere in the bham metro.
Saks Inc began selling off stores to stay afloat. We have reached the end of the rope. Parisian was the last. All that's left is Saks Department Stores.

Check out the link:
http://en.wikipedia.org/wiki/Parisian


Looking at this story, I bet another company will take over Saks. I wouldn't mind seeing a sellout to the Neiman Marcus Group or LVMH Group (Louis Vuitton Moet Hennessy). Anything is possible...