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Article: Allied/Federated score points with payments. (Allied Stores Corp. and Federated Department Stores Inc.)
- Article from:
- WWD
- Article date:
- January 15, 1990
- Author:
CopyrightCOPYRIGHT 1990 Conde Nast Publications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Allied/Federated Score Points With Payments
NEW YORK (FNS) - Campeau's Allied and Federated department stores scored a lot of points with their vendors by paying their January bills, but the move won't open a normal flow of spring merchandise immediately, according to several major suppliers.
It could start the trucks rolling now if Campeau can get a long extension of today's deadline to cure a technical default on $2.3 billion in bank loans.
At the least, the payments almost guarantee a successful reorganization if the companies are forced to file for Chapter 11. Some factoring executives said they would make sure that the companies get credit.