Value City Department Stores, Inc. on Tuesday announced the adoption of a new holding company structure for its operating units and a stand-alone service organization. As a result, the stock of Value City Department Stores, Inc. will be exchanged on a share-for-share basis for shares of the new holding company, Retail Ventures, Inc., and Value City Department Stores, Inc. will become a wholly owned subsidiary of Retail Ventures, Inc. The common stock of the new holding company will trade on the New York Stock Exchange under the symbol “RVI” effective October 8, 2003.
John Rossler, President and CEO of Retail Ventures, Inc., said, “At its simplest level, this corporate restructuring eliminates any confusion between Value City Department Stores as a major off-price department store chain and its parent company.
“But more important,” he added, “our new holding company structure and corporate name better suit the retailing company we are today. RVI operates a strong portfolio of operating companies that bracket the off-price retail segment, both in terms of price point and merchandising as well as geography. We are investing in the future of our brands and see strong growth potential in each. The new holding company structure allows us to increase efficiency and lower costs at the operating company level by centralizing key support services like Finance and Accounting, Information Technology, Human Resources and Administration, Loss Prevention, Marketing, Logistics/Distribution Centers, and Legal in a stand-alone service organization.”
