Wards Drops Search For Investors

In an effort to end speculation about its future, Montgomery Ward said it is no longer seeking outside investors.

The privately held retailer said in May it might sell some of the business so it could expand and upgrade its existing 393 stores, but it officially canceled that plan in an announcement Thursday.

Chairman Bernard Brennan reiterated the Chicago-based company did not need an immediate cash infusion.

“All the speculation that’s out there is disruptive to the company. It causes questions for the associates and the vendors,” Brennan said.

He said Montgomery Ward spoke with several potential investors but that none wanted a stake in the entire business as it is organized, and Ward wanted to keep the company intact.

Brennan said the company may consider selling stock in its highly profitable Signature Group, a direct marketing firm whose products include Amoco Motor Club and Diners Ala Card.