Now that a price has been established and Woodies has shown it is will to break up the chain, I expect there to be a renewed interest and other bids for various locations," the source said.
A former Woodies chairman and chief executive, Arnold Aronson, now a retailing consultant with Levy, Kerson Aronson & Associates, said that, with the purchase of the 11 stores, Federated "solidifies a market position in all of the important Mid-Atlantic markets.
Federated would not comment on the future of the Woodies name or the price it has offered for the purchase.
When Woodies attempted to back-pedal in the early 1990s, after a recession hit the region, it found Hecht's and other competitors had secured its former market.
Since entering bankruptcy proceedings, Woodies has reported closing five stores, including a furniture store in Seven Corners Mall in suburban Virginia, and four Wanamaker locations.
In another age, Woodies probably could have survived bankruptcy protection as an independent company with a restructured debt load, according to observers.