Spiegel Catalog sale set
May 31, 2004-- Furniture Today,
A company headed by a former Spiegel executive is acquiring the once-mighty Spiegel Catalog for $31 million.
Pangea Holdings Ltd., a Hinsdale, Ill.-based company led by Christian Feuer, a former vice president of marketing at Spiegel, will acquire substantially all the catalog's assets and inventory and will assume certain liabilities.
At its peak in 1994, Spiegel was a leader in catalog presentations of home furnishings and had revenues of $1.2 billion, including more than $150 million from furniture and decorative accessories. In recent years, revenues had declined dramatically.
Spiegel Group, parent company of Spiegel Catalog, Newport News and Eddie Bauer, filed for Chapter 11 bankruptcy protection in March 2003. Earlier this month, Pangea won an auction to acquire Newport News and expects to close the deal this week.
Spiegel Group is controlled by the family of German billionaire Michael Otto, which owns 89% of the company. Spiegel has said it also intends to sell its Eddie Bauer retail and catalog business, but no deal has been announced.