Article: CHH selling Thalhimers to May Co. (Carter Hawley Hale Stores Inc. to sell Thalhimer Brothers Inc. department store chain to May Department Stores Co.)

CHH SELLING THALHIMERS TO MAY CO.

NEW YORK (FNS) - Carter Hawley Hale Stores, which has been foundering in red ink, has agreed to sell its Thalhimers chain to May Department Stores Co. for $325 million. Another $15 million is expected after closing adjustments.

Thalhimers, based in Richmond, Va., is one of CHH's best divisions, with sales last year of about $456 million. Free cash flow is reportedly about $38 million, although the company would not confirm that figure.

The announcement gave a substantial boost to sharply depressed CHH junk bonds. CHH senior subordinated notes, which were being quoted in the mid-40s on Monday, shot up to 60 on ...

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