CORPORATIONS: The Highflyers Hit a Low

The Highflyers Hit a Low

The Christmas buying season brought little cheer to corporate raider and would-be retailing tycoon Robert Campeau. Citibank notified his Allied and , Federated stores, owners of Bloomingdale's and Abraham & Straus, that the bank might formally place loans totaling $2.3 billion in default as early as Jan. 10. Many Campeau suppliers and investors concluded that the chains would soon be forced to seek Chapter 11 bankruptcy. "You would have to be out of your mind to ship to either of these companies under current conditions," said one supplier.

The bankruptcy blues had already struck another takeover team, go-getting Kohlberg Kravis Roberts....