Saks Incorporated has finalized its agreement to sell the leasehold interests and certain fixtures and equipment of four North Carolina Proffitt’s stores to Belk, Inc. Belk will assume the leases on the properties.
The properties are the 90,000 square foot store in the Colonial Mall in Greenville, the 80,000 square foot store in the Golden East Crossing Mall in Rocky Mount, the 50,000 square foot store in the Vernon Park Mall in Kinston, and the 52,000 square foot store in the Berkeley Mall in Goldsboro.
Proffitt’s plans to operate the stores through the end of February, at which time the leases and applicable assets will transfer to Belk.
George Jones, President and Chief Executive Officer of Saks Department Store Group, commented, “We continue to evaluate our real estate portfolio and rationalize it as appropriate in order to focus our resources on our most productive locations. This action is consistent with that strategy.”
Proffitt’s employs approximately 300 associates in the four stores. These associates will be offered transfer opportunities to other stores, may be given opportunities to interview for open store positions with Belk, or will receive appropriate severance packages.
Toni Browning, President and Chief Executive Officer of Proffitt’s/McRae’s, noted, “Proffitt’s acquired these four stores from Brody’s in 1998. We are very grateful for the hard work and dedication of each of the associates in these stores, many of whom have been with us since 1998 and were with Brody’s for several years before that. We are committed to making sure all associates are provided appropriate assistance during this transition period.”
The Company will continue to operate its Proffitt’s store in Asheville, North Carolina. Following the consummation of the transaction, the Company will operate 23 Proffitt’s stores throughout Alabama, Georgia, Kentucky, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia and 30 McRae’s stores in Alabama, Florida, Louisiana, and Mississippi.
