said today it will sell nine stores and their related assets to the
May Department Stores
for $310 million.
The stores are located in Nashville; Baton Rouge and Lafayette, La.; and Orlando, Fla. The five Tennessee stores will become Hecht's, while the three Louisiana stores will be Foley's. The Florida store will become a Lord & Taylor. Saks estimates that annual revenue from the stores is roughly $210 million.
Employees will either be offered positions at Saks' other stores, jobs with May or given severance packages. Saks couldn't be reached for comment on the number of employees the sale will affect.
The retailer, which is based in Birmingham, Ala., expects to close the transaction in March. Saks doesn't expect any charges other than a loss on the disposition of assets.
Shares of Saks gained 65 cents, or 5.2%, to $13.05 in recent
New York Stock Exchange