Regional department store Shoppers World has acquired Forman Mills, doubling its store count and expanding its geography, according to an emailed press release. The amount was not disclosed.
The deal likely rescues Forman Mills from bankruptcy. The retailer recently laid off hundreds of employees and told the Pennsylvania Department of Labor & Industry it would have to file Chapter 11 if it couldn’t find a buyer.
Shoppers World runs 40 stores in 13 states, while Forman Mills runs 43 warehouse-style discount stores in nine states, with some geographical overlap.
Shoppers World plans to keep Forman Mills stores open, according to a statement from CEO Sam Dushey, a member of the founding family.
“We’re thrilled to add Forman Mills to the SW family of businesses, and plan to continue operating all Forman Mills locations, and we look forward to seeing benefits to both companies from this new acquisition,” he said.
In fact, while Forman Mills was recently contemplating a bankruptcy filing, it will soon expand instead, according to a statement from the chain’s chief executive. The discounter caters to a lower-income customer base that has been especially hard hit by inflation and economic uncertainty.
“We’re pleased to be joining a company with such longevity, strong community roots and financial stability,” Forman Mills CEO Mike Kvitko said. “I’m happy for our team and our vendor partners, and I’m also happy to announce the upcoming openings of our newest Forman Mills stores at Marshfield Plaza in Chicago and at 48th & Market in Philadelphia.”
Shoppers World’s stores are in New York, New Jersey, Indiana, Maryland, Connecticut, Virginia, Georgia, Michigan, Ohio, Pennsylvania, Illinois, Nevada and Texas. Forman Mills has locations in Philadelphia, New Jersey, Delaware, Maryland, Detroit, Chicago, Milwaukee, Ohio and New York.