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Federated Department Stores (FD – 25-15/16) is the parent of such names as Bloomingdale's, Macy's, Lazarus, and Rich's. Today, FD officials announced some news regarding its Internet and catalog-based branch, Fingerhut. The company is planning a "significant downsizing" of the operations, aiming to eliminate 550, or 24 percent, of the work staff by January. As a result, FD will absorb a restructuring cost of between $75 million and $100 million in the third and fourth quarters. This restructuring will ultimately save the company around $40 million per year in overhead. The retailer maintains its long-term earnings-per-share growth goal at 13-to-15 percent.
Shortly after the open, FD was halted at yesterday's closing price of 25-15/16, with a bid price of 27 and an ask price of 29. This represents a gain of four and 11 percent, respectively.