Saks Incorporated
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Saks Incorporated (NYSE: [SKS]
The company's flagship and namesake stores operate under the name of Saks Fifth Avenue. It also operates several outlet stores under the Off 5th nameplate, and the e-commerce website Saks.com. The ventures comprise the Saks Fifth Avenue Enterprises division of the company.
The company additionally operates 39 upper mid-level Parisian department stores, and 57 Club Libby Lu specialty shops targeted to girls between the ages of 6-12 years old.
History
Saks Incorporated began as Proffitt’s, Inc., with just five Proffitt’s stores in metropolitan Knoxville, Tennessee. From 1994 to 1998, the company added McRae's, Younkers, Parisian, Herberger's, Carson Pirie Scott, Boston Store, and Bergner's chains, as well as 32 additional stores from Lovemans, Hess, Parks-Belk, and Brody’s, which were converted into existing store nameplates.In September 1998, Proffitt’s, Inc. and Saks Holdings, Inc. completed a merger transaction where Saks Fifth Avenue and Off 5th outlet stores became a division of Proffitt’s, Inc. As a result, the corporate name of Proffitt’s, Inc. was changed to Saks Incorporated. The former Saks Holdings properties eventually would become the Saks Fifth Avenue Enterprises division of the renamed corporation.
By 2005, Saks Incorporated began to seek a narrower focus towards the luxury-oriented retail synonymous with its Saks Fifth Avenue stores. The decision resulted in a July 2005 sale of its combined 47 Proffitt's and McRae's stores to Belk for approximately $622 million. On October 31 that same year, Saks announced that it was selling the 142 stores within its Northern Department Store Group, including Carson Pirie Scott, Bergner's, Younkers, Herberger's, and Boston Store) to Bon-Ton Stores, Inc., for $1.1 billion; the transaction was complete as of March 6, 2006.[link]
Recent News
In January 2006, Saks Incorporated announced that it was exploring strategic alternatives for its 38 Parisian stores (which could lead to a sale), the last of its mid-level department store chains. Various reports have also indicated interest in sale of the Club Libby Lu stores. The company's activity within the last 12 months is seemingly oriented toward the return of Saks Fifth Avenue as an independently operated brand for the first time in more than 30 years. Some industry experts have also speculated that the activity positions a streamlined Saks Incorporated itself for buyout at a later point.See also
External links
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