Exclusive Financial Advisor on Sale of McRae’s Department Stores to Proffitt’s Department Stores
McRae’s, a regional department store brand in the southeastern United States, engaged Financo’s assistance in identifying a partner that would enable McRae’s to benefit from increased economies of scale as the department store industry consolidation was aggressively increasing in the mid-90’s.
Financo understood that although Proffitt’s was smaller than privately held McRae’s, as a public entity it would be easier to access capital markets. The combined entity would operate 53 stores in small and midsized towns and be better able to compete as a result of the elimination of redundant cost functions and revenue enhancement.