Charlotte, NC, July 6--Belk Inc. has completed its acquisition of 47 Proffitt's and McRae's department stores from Saks Inc.
Belk announced in April it was buying the stores, which are in 11 Southeastern states, for $622 million.
As part of the Belk assumed $1 million in capitalized lease obligations, along with the stores' operating leases.
The acquisition brings Belk's total 14-state store count to 275 and is expected to boost annual sales volume to $3.15 billion.
"We're delighted to welcome the dedicated associates of Proffitt's and McRae's stores to our company, and we look forward to building on these stores' outstanding traditions of customer service excellence and community involvement," says Tim Belk, chief executive of Belk. "This is an excellent strategic fit that gives us a leading market position in Tennessee and Mississippi, and a stronger presence in nine other states."
Belk is offering employment to all Proffitt's and McRae's store employees and will operate the Proffitt's/McRae's headquarters in Alcoa, Tenn., until October.
Employees in the Alcoa headquarters will either be offered positions with Belk or will be given severance packages.
Belk is the largest privately owned department-store chain. The company was founded in Monroe in 1888.
