FEDERATED TO SELL STORES IN ANTITRUST CASE.

Byline: Deborah Adamson Daily News Staff Writer

Federated Department Stores Inc. said Thursday it will sell five to seven stores, including the Northridge Broadway, to settle state antitrust concerns.

The California Attorney General's Office mandated that Federated make an effort to sell the stores before the office concludes an antitrust review of the retailer's purchase of Broadway Stores Inc.

Cincinnati-based Federated, which also owns Macy's and Bloomingdale's, announced plans to acquire the struggling Los Angeles retailer in August.

``Our goal is to entice a competitor into the market so Federated will have competition and therefore have a reason to keep its prices down,'' said John Donhoff, a deputy attorney general.

Federated spokeswoman Mary Ann Shannon said the retailer ``is pleased to have settled these issues with the Attorney General's Office.''

Federated has agreed to pay $150,000 to the state Justice Department within 10 days to cover investigation costs.

If no buyers are found for the stores within 30 days, or if bids are lower than a minimum value set by Federated, then the retailer will be allowed to keep operating the stores, state officials said.

Stores that are turned over to mall operators instead of sold will be available for purchase or lease by other retailers.

Northridge Fashion Center executives have considered converting the mall's Broadway into an entertainment center with a bookstore, movie theater and restaurants.

But no final plans have been made, said marketing director Annette Bethers.

Federated also is prohibited from blocking competitors' entry into Fashion Square Sherman Oaks, Glendale Galleria, Beverly Center, Century City Shopping Center and up to seven more malls in the Bay Area and Sacramento.

Other stores targeted for possible sale are a Macy's in Santa Rosa, a Weinstocks in Sacramento and Emporiums in Concord, Richmond, Fairfield and Newark. The Broadway operated stores under the Broadway, Emporium and Weinstocks names.

The state picked those seven stores for divestiture because there was buyer interest, Donhoff said. He declined to identify the potential buyers.

While the Federated stores can be sold to any business, Donhoff said, it is more likely that another retailer will want to take them over.

``The market reality is that when it comes to anchor space, there just aren't a lot of businesses that can use 200,000 square feet of retail space,'' he said. ``If a department store that competes with Federated is interested in the space and they bid, they will (most likely) win the bid.''

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Photo

Photo: The Broadway at Northridge Fashion Center is up forsale.

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