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Perhaps the biggest news about retail structuring over the past year has been centered around the deals that failed to come off. And the big news for '98 likely will be the deals pending at press time. During the census year ended June 30, mergers and acquisitions still provided the most action, while liquidations came a close second. Out of Chapter 11 filings emerged a disturbing trend: chains quickly folding after filing.
Initial public offerings among retailers were few and far between.
Among the deals that failed to come off:
* The Staples and Office Depot proposal to merge has been hampered by FTC opposition, but a government decision on whether to drop its opposition appeared imminent at press time.
* Kmart was on the verge of unloading its Builder's Square home center chain through a merger with HomeBase, the home center chain owned by Waban, until HomeBase pulled the plug without explanation.
* ShopKo called off its questionable merger with Phar-Mor and saw its stock rise to a record price as it began hunting for another retail company with which to partner.
* Northern Automotive canceled its $92 million IPO and instead sold a 51% stake in the company to Invest Corp. and changed its name to CSK Automotive, after its three chains, Checkers, Schuck's and Kragen.
* Advance Auto Parts hired a New York investment banker to find a buyer for the parts chain, but when nobody made an offer it found attractive, management took the chain off the block. * Fred's backed out of a proposed acquisition of Rose's Stores after Rose's comp stores sales began to free fall.
* Ocean Reef Management backed off a plan to buy Best Products, and the latter was sold to the Jay Schottenstein family interests (which control Value City) and liquidated.
Besides the Staples/Office Depot merger, which shareholders approved last month, another major pending deal was Waban's plan...