Three busloads of Fingerhut workers marched and shouted outside Federated Department Stores headquarters Friday in an attempt to speed up a Fingerhut sale and forestall a 3,300-employee layoff.

        Following the lead of a man wielding a bullhorn, several hundred members of the Union of Needletrades, Industrial and Textile Employees (UNITE) yelled “Shame on Federated” and “Sell this company now” in their 8 a.m. protest.

Loveland resident LaVerne Mayfield protests outside Federated Department Stores headquarters Friday. (Glenn Hartong photo) | ZOOM |

        On what was the last day of many Fingerhut careers, the pickets from Minnesota and Tennessee portrayed themselves as victims of Federated's failed attempt to broaden its e-commerce strategy. Federated bought Fingerhut in 1999 for $1.7 billion and has since booked an even greater amount for asset writedowns and plant closings.

        “They didn't buy Fingerhut for what it is; they bought it because it was a distribution company,” said Chris James, half of a husband-wife tandem with a combined 34 years at the Fingerhut warehouse in St. Cloud, Minn. “They didn't invest in the business, and they put people in charge who didn't know how to run the business.”

        Business Development Group Acquisitions, a Wayzata, Minn., company headed by turnaround specialist Peter Lytle, agreed Feb. 21 to buy Fingerhut for an undisclosed price.

        But the deal is contingent on financing, and Federated is getting antsy. March 28, Federated said it planned to proceed with itslayoff Friday of 3,300 employees — 55 percent of Fingerhut's 6,000-person work force. Federated is also in talks to sell pieces of Fingerhut's operations.

        UNITE members said it is unreasonable of Federated to expect Mr. Lytle to put a deal together for Fingerhut in five weeks. They want Federated to rescind the employee terminations and commit itself to a Fingerhut sale rather than a liquidation.

        “We didn't ask Federated to buy Fingerhut, and now that they're through with it — a company we helped build into a successful and profitable company over 50 years — Federated wants to liquidate it,” UNITE President Bruce Raynor told the marchers over the bullhorn. “This is one of the most cynical examples of corporations run wild in this country.”

        Federated spokeswoman Carol Sanger said the company had already begun handing out termination notices. She said Fingerhut continues to take and fulfill customer orders, but is not mailing new catalogs or soliciting business on its Web site.

        Federated objected to UNITE's accusation that it is behaving half-heartedly in its effort to sell Fingerhut, which the company said is a money-loser. If that were the case, the company said, it would have simply shut down operations and begun a liquidation sale in January.

        “Countless hours have been spent by Federated in an attempt to effect a sale of Fingerhut — ideally as a going concern,” the company said in a statement, “and if that proves impossible, then (a sale) to parties interested in buying and operating individual components of Fingerhut, and potentially hiring back former Fingerhut workers.”

        Mr. Lytle has not indicated any displeasure with Federated's desired timetable to dispose of Fingerhut. In fact, he saluted Federated for giving him additional time to line up financing.

        “If this sale doesn't go through in the next few days, this demonstration is going to move from Federated headquarters to out front of Federated stores,” Mr. Raynor shouted to the crowd. “We will hold you accountable on the streets of America.”

Pets can have medical scan
Workers protest Federated
Jobs increase during March
Newport Levee adds 'Bar Louie' outlet
Alabama put forth more than $234M to snag Hyundai plant
Enron plaintiffs try to stop Andersen sales
Business Digest
Tristate Summary
What's the Buzz?
HIGGINS: Personal Finance
Rate report
Returns eased by tax breaks