Fingerhut's Pricing Strategy (B): Epilogue

Abstract

This Epilogue tells the story of Fingerhut when it was acquired by Federated Department Stores for $1.7 billion, at the height of the internet bubble. Federated was interested in Fingerhut's order fulfillment systems as a possible prototype for its own on-line store. That on-line venture never materialized, and Federated began to sell Fingerhut in pieces. It was purchased by the original owner and a Minnesota entrepreneur who are in the process of restoring it to health. The case continues to explore the ethics of Fingerhut's business model, what attracted Federated and why it failed.