Proffitt's, Inc. Announces Acquisition of North Carolina Based Brody's.
Brody's stores are located in The Plaza and Carolina East Mall in Greenville, Golden East Crossing in Rocky Mount, Vernon Park Mall in Kinston, Berkeley Mall in Goldsboro, and Twin Rivers Mall in New Bern. Brody's stores carry a full selection of brand-name fashion apparel, shoes, accessories, and cosmetics.
The Brody's stores are expected to be converted into Proffitt's Division stores by mid-1998. At that time, functions performed at Brody's corporate offices and distribution facility in Greenville, North Carolina will be consolidated into the Company's Proffitt's Division, headquartered in Knoxville, Tennessee.
R. Brad Martin, Chairman and Chief Executive Officer of Proffitt's, commented, "The acquisition of Brody's will provide our Company with entry into several important North Carolina markets, adding approximately 275,000 gross square feet of space to our store base. This transaction is consistent with our growth strategy and will create value for our shareholders."
Hyman J. Brody, II, President of Brody's, noted, "We are most pleased to combine our profitable organization with Proffitt's. We have had a long-standing respect for the management, merchandising strategies, and customer service standards of this great Company. Proffitt's has a culture similar to our own and has earned a great reputation in the way it treats its associates, customers, and business partners, and we are proud to be affiliated with such a Company. This combination will allow our stores to reap the benefits of shared resources and economies of scale, which are critical in today's competitive retail environment. Our customers will enjoy wider assortments of premier merchandise while continuing to receive superior customer service."
Consideration of the transaction was paid in cash; specific terms were not disclosed.
Brody's was founded by Hyman J. Brody in the early 1900s, with its beginnings as a shoe store in Sumter, South Carolina. Brody raised ten sons and one daughter to work in the retail business. In 1928, one of Brody's sons, Leo Brody, relocated to Kinston, North Carolina and founded Brody Brothers Dry Goods. Leo Brody, along with six of his brothers, Reuben, Sam, Jake, Alex, Sammy, and Morris, began to expand the retail business. Today, Brody's, which operates anchor stores offering upscale fashion merchandise in small markets, is run by third generation family members Hyman J. Brody, II and David Brody. The Brody family has lived in eastern North Carolina for over 70 years where they are very involved in numerous civic and charitable causes.
Proffitt's, Inc. operates over 230 department stores and four free-standing furniture stores under the store names of Proffitt's, McRae's, Younkers, Parisian, Herberger's, Carson Pirie Scott, Boston Store, and Bergner's. The Company's annual revenues exceed $3.5 billion.
CONTACT: Proffitt's, Inc.
Julia Bentley, 423/981-6243
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|Date:||Mar 6, 1998|
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