It's Splitsville At Melville
AN INVESTOR FAVORITE IT'S NOT: Melville, its shares down 35% in three years, has become a regular target of angry shareholder groups. On Oct. 24, the retailing giant finally opted to appease Wall Street by taking itself apart at the seams. Melville, which a week earlier said it would sell its Marshalls chain to rival TJX, will split into three separate companies. One, headed by Melville Chief Executive Stanley Goldstein, will consist of its CVS and Linens 'n Things chains; two other spin-offs, set to be complete by the end of 1996, will center around its Thom McAnn shoe business and Kay-Bee toy shops. Investors were none too impressed, sending Melville shares down 7%.