July 20, 1999
FedCo Stores Liquidate to Public
FedCo, a California chain of members-only discount stores, opened its doors to non-members to carry out the liquidation of its merchandise, which includes electronics, housewares, groceries, furniture and jewelry.
A group of four companies won the right in federal bankruptcy court to manage the closing of the FedCo stores and agreed to pay FedCo $55 million for its inventory. The companies plan to close the stores soon and will deeply discount merchandise for the next six to eight weeks. "This will be a rare opportunity for California consumers, both members and non-members, to obtain tremendous bargains at the stores," says Andy Gumaer, executive vice president of Hilco/Great American Group, one of the companies managing FedCo's liquidation.
Discount retailer Target purchased all real estate assets from FedCo for about $120 million and plans to convert six of the 10 superstores in southern California to Target locations.
- by Stacey King