13th Apr 2006 17:15
HSBC Holdings PLC13 April 2006 HSBC ACQUIRES BOSCOV'S CREDIT CARD PORTFOLIO HSBC Retail Services, a business unit of HSBC North America Holdings, Inc., hasentered into a strategic alliance to acquire the credit receivables, and managethe ongoing credit programme, of Boscov's Department Stores, the largestfamily-owned, independent department store in the United States. HSBC Retail Services, through HSBC Bank Nevada, N.A., is purchasing the consumeraccounts and approximately US$170 million in receivables. Under the terms of the10-year agreement, HSBC is paying upfront a US$29 million premium on the creditcard portfolio. The transaction is expected to close in the second quarter of2006. By partnering with HSBC, Boscov's customers will continue to enjoy all of thebenefits of their existing card programme. This includes a points-based rewardsprogramme where customers earn up to four points for every dollar charged ontheir Boscov's private label card. In addition, Boscov's will be able to take advantage of HSBC's expertise incredit, marketing analytics and customer loyalty to acquire new customers andbuild market share as it continues to grow its business. Joseph Hoff, chief executive officer, HSBC Retail Services, said: "We arecommitted to providing additional value to Boscov's credit programme. Makingfull use of our industry expertise, being responsive to our partner's needs in acredit programme, and offering flexible financing solutions are what we do best.Delivering on our commitment to help Boscov's enhance its customer relationshipsis our top priority." Dean Sheaffer, controller and senior vice president of credit and customerrelationship management, Boscov's, said: "After careful consideration of allpossible options to add value to Boscov's credit programme for our customers andstakeholders, the obvious choice was HSBC. Taking the Boscov's programme to thenext level required that we find a partner with deep retail private label,operational, risk management and marketing skills. HSBC is clearly the industryleader delivering this skill-set. We look forward to working with our newstrategic partner to deepen our knowledge of our customer base and to developinitiatives to enhance the Boscov's credit programme's value to our customersand our company." Notes to editors: 1. Boscov'sBoscov's Department Stores is the largest full-line, family owned independentdepartment store in the country, operating 40 stores including Pennsylvania, New York, New Jersey, Delaware, Maryland and Virginia. The stores sell men's,women's and children's apparel, shoes and accessories; also jewellery,cosmetics, housewares, appliances, toys, and sporting goods. Some stores alsofeature Ritz Camera Centers, travel agencies, vision centres, hair salons, andrestaurants. Boscov's was founded by Solomon Boscov in 1921. Today the companygenerates yearly sales revenue of about US$1.1 billion. 2. HSBC Retail ServicesHSBC Retail Services, a business unit of HSBC North America Holdings, Inc., is aleading issuer of private label (merchant branded) credit cards in the UnitedStates. This business provides flexible, customised credit card solutions formany of the world's premier retailers and manufacturers and has more than 60active merchant relationships. For more information, visitwww.hsbcretailservices.com. 3. HSBC North America Holdings, Inc.HSBC - North America comprises all of HSBC's US and Canadian businesses,including the former Household International businesses. The company'sbusinesses serve nearly 60 million customers in five key areas: personalfinancial services, consumer finance, commercial banking, private banking andcorporate, investment banking and markets. Financial products and services areoffered under the HSBC, HFC and Beneficial brands. For more information, visit:www.hsbcusa.com. 4. HSBC Holdings plcHSBC Holdings plc serves over 125 million customers worldwide through some 9,500offices in 76 countries and territories in Europe, the Asia-Pacific region, theAmericas, the Middle East and Africa. With assets of US$1,502 billion at 31December 2005, HSBC is one of the world's largest banking and financial servicesorganisations. HSBC is marketed worldwide as 'the world's local bank'. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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