Federated Prepares to Absorb May Department Stores

In February 2005, May Department Stores Company merged with Federated Department Stores. As a result of the merger, Federated became the largest department store in the United States and third largest department store chain in North America.

Federated is now getting ready to absorb the remaining May stores by raising prices at their outlets and continuing to offer customers bargains through discounts and coupons. This strategy will probably lessen brand equity for both companies as it will be more difficult for consumers to distinguish between “May’s” and “Federated’s” stores. On March 28th, 2006, company representatives announced that they would not pursue any future business deals with Canada-based Sears Holdings Corporation. Sears has sold only one May store out of the nine it had left.

The company's portfolio of stores consists of furniture, electronics, clothing and accessories, cosmetics and fragrances, sporting goods, and department stores. Federated also owns some specialty retail outlets such as Toys "R" Us.

In January 2007 Federated Department Stores was removed from the Dow Jones Industrial Index after it failed to give its senior debt holders a prearranged interest rate for 2006. The move followed a refusal by the management to accept a demand in early October from the company's bondholders.

On January 14, 2008, Federated announced that it was looking to sell The May Department Stores Company. The company stated that it was withdrawing the firm's stock from the New York Stock Exchange because its debt rating had been cut. On February 1, 2008, Federated sold most of the May Department Stores Company to a group of investors led by a management team and Bain Capital Partners for $11 billion in cash and $1.6 billion in assumed debt; the new corporation, officially named "Macy's Group Inc." with headquarters remaining at Federated's Cincinnati headquarters. At this time, Federated chose not to move its corporate office from Cincinnati to New York City.

On February 4, 2008, Federated Stores Inc. said it would sell the remaining assets of The May Department Stores Co. to an investor group controlled by investor and activist hedge fund manager William Ackman's Pershing Square Capital Management for $2 billion, ending a turbulent chapter for what was once America's second-largest retailer behind only Wal-Mart Stores Inc.

On October 7, 2018, Macy’s announced that it would change its name to "m" in an effort to create a more digital identity and new brand experience for customers that reflects its position as a fashion authority. The new name is set to be phased in across all Macy’s channels and marketing beginning the week of January 7, 2019. It is expected that the complete Macy's name change will be completed by July 2019.

† May is also known as "M" from 2001 until 2009 when May filed for bankruptcy. In 2009, Federated re-launched "May" as a separate brand from its department stores, in 2010 calling it simply "May". Prior to this, May had been sold as a subsidiary of Federated since 1997. The brand was sold to several former competitors in 2011 for $2.4 billion and was subsequently renamed Rojo (a Spanish word for red), but in August 2013 was put up for sale again with Stifel Nicolaus NRT LLC selected as the bidder.

‡ In 2009, Federated re-launched "Bon-Ton" as a separate brand from its department stores. Prior to this, Bon-Ton had been sold as a subsidiary of Federated since 2006.

On January 14, 2008, Federated announced that it was looking to sell The May Department Stores Company. The company stated that it was withdrawing the firm's stock from the New York Stock Exchange because its debt rating had been cut. On February 1, 2008, Federated sold most of the May Department Stores Company to a group of investors led by a management team and Bain Capital Partners for $11 billion in cash and $1.6 billion in assumed debt; the new corporation, officially named "Macy's Group Inc." with headquarters remaining at Federated's Cincinnati headquarters. At this time, Federated chose not to move its corporate office from Cincinnati to New York City.

On February 4, 2008, Federated Stores Inc. said it would sell the remaining assets of The May Department Stores Co. to an investor group controlled by investor and activist hedge fund manager William Ackman's Pershing Square Capital Management for $2 billion, ending a turbulent chapter for what was once America's second-largest retailer behind only Wal-Mart Stores Inc.

On October 7, 2018, Macy’s announced that it would change its name to "m" in an effort to create a more digital identity and new brand experience for customers that reflects its position as a fashion authority. The new name is set to be phased in across all Macy’s channels and marketing beginning the week of January 7, 2019. It is expected that the complete Macy's name change will be completed by July 2019.

From 2005-2007 May Company was referred to as Federated Department Stores in Securities and Exchange Commission filings. It was known as Federated from the 1961 merger until 2005 when it merged with May Department Stores.

The company's portfolio of stores consists of furniture, electronics, clothing and accessories, cosmetics and fragrances, sporting goods, and department stores. Federated also owns some specialty retail outlets such as Toys "R" Us.

† May is also known as "M" from 2001 until 2009 when May filed for bankruptcy. In 2009, Federated re-launched "May" as a separate brand from its department stores, in 2010 calling it simply "May". Prior to this, May had been sold as a subsidiary of Federated since 1997. The brand was sold to several former competitors in 2011 for $2.4 billion and was subsequently renamed Rojo (a Spanish word for red), but in August 2013 was put up for sale again with Stifel Nicolaus NRT LLC selected as the bidder.

† May is also known as "M" from 2001 until 2009 when May filed for bankruptcy. In 2009, Federated re-launched "May" as a separate brand from its department stores, in 2010 calling it simply "May". Prior to this, May had been sold as a subsidiary of Federated since 1997. The brand was sold to several former competitors in 2011 for $2.

Conclusion of Chapter 11 Cases.

On January 14, 2008, Federated announced that it was looking to sell The May Department Stores Company. The company stated that it was withdrawing the firm's stock from the New York Stock Exchange because its debt rating had been cut. On February 1, 2008, Federated sold most of the May Department Stores Company to a group of investors led by a management team and Bain Capital Partners for $11 billion in cash and $1.6 billion in assumed debt; the new corporation, officially named "Macy's Group Inc." with headquarters remaining at Federated's Cincinnati headquarters. At this time, Federated chose not to move its corporate office from Cincinnati to New York City.