Belk to sell private label credit card business to GE Consumer Finance

Belk Inc., Charlotte, N.C., yesterday announced that it has entered into an agreement to sell its private label credit card business to GE Consumer Finance, the consumer lending unit of General Electric Co. Terms of the agreement were not disclosed. As part of the transaction, Belk and GE Consumer Finance will also enter into a long-term marketing and servicing alliance with an initial term of 10 years. The transaction has been approved by both companies and is expected to close in January 2006 subject to customary regulatory review and closing conditions. The transaction will include the Proffitt's and McRae's proprietary credit card business associated with Belk's acquisition of Proffitt's and McRae's stores from Saks Inc. in July 2005. Under the agreement, GE Consumer Finance will partner with Belk to continue providing service and loyalty benefits to approximately 4.2 million Belk, Proffitt's and McRae's cardholders. Upon completion of the transaction, approximately 160 associates of the Belk Center credit operations group located at the Belk corporate office in Charlotte will become employees of GE Consumer Finance and remain in Charlotte.