ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Saturday, March 9, 1996 TAG: 9603120020
SECTION: BUSINESS PAGE: A-4 EDITION: METRO
SOURCE: MEGAN SCHNABEL STAFF WRITER
Leggett Stores Inc.'s president has confirmed another retailer has approached the South Boston-based chain with a proposal to buy its stores.
But almost a week after rumors about the sale of Leggett first surfaced, the company continues to hold its silence about any details.
Company president Robert Leggett said Friday that the chain has received an inquiry from a "major retailer" proposing an acquisition and that the company's board of directors has formed a committee to study the proposal.
Leggett would not release the name of the potential buyer and said he did not know when his company would have anything more to say. He also would not say whether the proposal involved the entire 37-store chain of department stores or just selected locations, but specified that the Belk-Leggett store in Danville is not included in any offer.
Industry observers have speculated that Proffitt's Inc., a department store chain based in Alcoa, Tenn., is interested in expanding its Virginia market by buying all or part of the Leggett chain. Proffitt's currently operates stores in Virginia locations including Richmond and the Tidewater area.
"There's no question that Proffitt's is looking for acquisitions," said Kenneth Gassman, who follows Proffitt's and other retailers for Davenport & Co. of Virginia, a Richmond-based securities broker. The chain has grown quickly over the last several years, mostly through acquisitions, he said.
Gassman said he doesn't believe Proffitt's is ready to expand again so soon, however, after acquiring the 53-store, Iowa-based Younkers Inc. retail chain last fall.
Like Leggett, Proffitt's would not comment on whether negotiations are being conducted.
The names of two other national department store chains have surfaced in conjunction with the Leggett announcement. Both Nordstrom, an upscale Seattle-based chain, and Dillard Department Stores, based in Little Rock, Ark., have had their eyes on Virginia markets for some time.
Nordstrom has no immediate plans for branching into Western Virginia, a spokeswoman said. Calls to Dillard's headquarters had not been returned Friday.
LENGTH: Short : 46 linesby CNB