MINNEAPOLIS (AP) -- More than 800 Fingerhut employees in St. Cloud and Monticello will retain their jobs under an agreement announced Wednesday for the purchase of Fingerhut's receivables.
CompuCredit Corp. said it has agreed with Federated Department Stores Inc. to purchase approximately $1.2 billion in credit card receivables at a discount. The transaction also includes the Fingerhut Master Trust and the assumption of $450 million in receivables-backed debt that has been issued by the trust.
Terms of the deal with the Atlanta-based credit card company were not disclosed. The transaction, expected to close in July, is subject to final negotiation of a definitive purchase agreement.
However, both companies confirmed that CompuCredit intends to retain more than 800 Fingerhut employees who process payments for Fingerhut merchandise at the two credit facilities.
"We have made significant progress toward negotiating a final agreement with CompuCredit for the purchase of Fingerhut receivables, and we expect to be able to complete this transaction within the next month," said Ronald W. Tysoe, vice chairman of Cincinnati-based Federated. "We are delighted to welcome over 800 experienced and dedicated new employees to the CompuCredit family," said David Hanna, CompuCredit's chairman.
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