BANKRUPTCY: Save Us from Our Debts

Save Us from Our Debts

The doors opened at Bloomingdale's and other U.S. subsidiaries of Campeau Corp. last week, but it was hardly business as usual. After months of financial turmoil, the Toronto-based company placed its 257 American stores under bankruptcy court protection. The 6,000-page petition listed $7.5 billion of debt. Campeau renamed the U.S. operations Federated Stores Inc.; former Federal Reserve Board Chairman G. William Miller was named chairman of the unit.

The moves were the latest in a takeover saga that began when Canadian developer Robert Campeau acquired Allied Stores and Federated Department Stores for $10.2 billion in the 1980s. The bankruptcy filing will...

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