ALLIED STORES <ALS> SELLS DILLARD <DDS> TWO UNITS
Dillard Department Stores Inc, based
in Little Rock, Ark., and Allied Stores Corp jointly said they
entered a definitive purchase agreement for the sale to Dillard
of the Joske's and the Cain-Sloan divisions of Allied for 255
mln dlrs cash, subject to certain closing adjustments.
    The sale excludes certain real estate assets of Joske's and
Cain-Sloan, which Allied estimates have an aggregate value of
30 mln dlrs based on current market conditions.
    Joske's has 26 stores in Texas and one in Arizona.
Cain-Sloan has four stores in Nashville. Joske's is the largest
unit Allied has slated for sale in its restructuring.
    Allied Stores Corp, a subsidiary of Campeau Corp, was
acquired by acquired by the Canadian developer last year.
    Robert Campeau, chairman of Allied, said "this is a
terrific start to our disposition program which is proceeding
well ahead of schedule. This sale will fulfill the requirements
under our bank agreements to sell certain assets by June 30 and
give us additional flexibility in the disposal of the remaining
divisions being sold."
     Allied Stores is required to pay 200 mln dlrs in bank debt
by June 30. There had been some doubts on Wall Street that the
company could meet the payment.
    A Campeau source said, "We believe this cash sale puts us
in a very strong negotiating position to maximize the proceeds
Allied can receive from its other divisions."
    "Allied was able to put itself in a position where it knows
it will be able to meet the June 30 payment schedules," the
source said.
    About 1.1 bilion dlrs in Allied assets had been targeted
for sale by Dec. 31, 1988 to pay for the aquisition of Allied
by Campeau.
    Allied will be taking bids for its other divisions.
Targeted for sale are Bonwit Tellers, Garfinckel's, Dey's,
Donaldson's, Herpolsheimer's, Heer's, Miller's, Miller and
Rhoads, Pomeroy's, Catherine's, Plymouth Shops, and Jerry
Leonard. The divisions provided 38.4 pct of Allied net sales
and 11.8 pct of store profit in fiscal 1985.
 Reuter
