Macy To Eliminate Chain Of I. Magnin Retail Stores

LOS ANGELES - R. H. Macy & Co. went ahead yesterday with plans to discontinue its financially troubled I. Magnin retail operations, despite an offer by a grandson of the chain's founder to buy the 12 remaining Magnin stores.

As expected, Macy announced it will phase out the tradition-rich Magnin retailing name while converting four existing Magnin sites into different specialty stores. Liquidation sales were set for the eight other sites.

The action officially ended a bid by Beverly Hills, Calif., retailer Jerry Magnin to buy all the Magnin stores. Magnin, who owns the Ralph Lauren Polo store on Beverly Hills' tony Rodeo Drive said yesterday that he had offered Macy $40 million for the 12 stores.

Magnin, grandson of Mary Ann Magnin, who founded the chain in San Francisco in 1876, said he first inquired about purchasing the stores in 1991 and resumed that bid three months ago.

Last year, Macy closed several unprofitable I. Magnin stores, including one at Sixth and Pine in downtown Seattle, which closed June 30.

Several Magnin stores throughout California will be closed Monday through Wednesday to allow store personnel to prepare for the liquidation sales, which could continue until early next year.

Macy is in bankruptcy but is to emerge from bankruptcy protection when it merges with the Cincinnati-based Federated Department Stores, the parent company of The Bon Marche, in late

December.