Summarized by Kent Larsen
Is ZCMI purchase near? Rumors keep on swirling
Deseret News 12Oct99 B3
By Max B. Knudson and Jenifer K. Nii: Deseret News staff writers
Rumors that LDS Church-owned ZCMI will be sold have persisted and
company officials have continued to say that the rumors are
'speculation.' However, Richard H. Madsen , ZCMI's chairman,
president and chief executive officer, does say that the company is
trying to decide what to do, "It's the same thing that's been going
on for several months. As we've said before, we're currently studying
all of our alternatives."
The latest rumors, which surfaced on Tuesday, indicated that ZCMI
will be sold to The May Department Store Co., a 400-store chain that
currently has no presence in Utah. May operates a number of East
Coast chains, including Lord and Taylor, and Hechts. The rumor also
said that the sale will close by the end of the year. A purchase of
ZCMI would add 14 stores to May. May spokeswoman Rhonda West declined
to comment on the rumor.
Madsen told shareholders last May that ZCMI's most recent results
were "not acceptable." The company reported a loss of $9 million in
fiscal 1998, and its management has been working to restore the chain
to profitability.
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