Management of Financial Distress: The Case of Macy’s Department Stores

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Only the ABSTRACT of this paper is being made available at this time. Original date of submission of this paper is 2000.

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Article

Abstract

This paper focuses on conflicts of interest in the case of Macy’s Department Stores during a period when the company faced management buyout, and was ultimately acquired by Federated Department Stores (1986-1994). Analysis of the financially-distressed company reveals the bondholders did not aggressively react to the stockholders’ transfer of wealth. Moreover, this paper examines the analysts’, vendors’, rivals’, and all other affected parties’ reactions to significant changes in the financial status of the company over several years of its operation.

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