Filene's Basement files for Ch. 11 reorganization

WILMINGTON, Del. — Discount retailer Filene's Basement said Monday that it has filed to reorganize under Chapter 11 bankruptcy protection, less than two weeks after its new owner said it was reviewing "all available options."

The privately held company, based in Burlington, Mass., and recently acquired by the Buxbaum Group, also reached a deal that will let Crown Acquisitions and partner The Chetrit Group buy 17 of its 25 stores for $22 million. Those stores include flagships in Boston and New York.

The agreement is subject to a bankruptcy court auction, which is expected in about five weeks. The auction will allow other companies to submit bids for the 17 stores, as well as for the rest of the Filene's Basement locations and the chain's other assets.

New York-based Crown, a real estate and asset management company, and Chetrit plan to continue running the 17 stores under the Filene's Basement name. The companies said they will not liquidate inventory or real estate and hope to grow the business through capital infusions to the most profitable Filene's Basement stores.

Chetrit, also based in New York, already owns a Filene's Basement store in Manhattan. It also owns the Sears Tower in Chicago, the tallest building in the U.S. The Sears Tower will change its name to Willis Tower later this year.

Buxbaum Group, a California-based liquidator, acquired Filene's last month through an affiliate company, FB II Acquisition Corp. The sale came after the previous owner, Retail Ventures Inc., said the chain was experiencing "significant liquidity problems."

Filene's Basement, known for its "Running of the Brides" annual wedding gown sale, was founded more than a century ago in Boston as a place for the Filene's department store to sell excess merchandise.

Comments

[MIKEBC]

Another one ready to bite the dust in GOP depression #2

[larry278]

Sans Filene's Basment & the Globe, will the Bay State survive if Harvard, MIT & Tufts relocate? NC's Resarch Triangle & other Sun Belt sites could take these institutions. The recession/depression is getting worse. What happens if the endowments shrink 80-90%? Bye, bye, Boston for Berklee, Emerson, Harvard, MIT & Tufts. Ma could have to make do with U Mass.
Depressions can be awful as countries, states & institutions strive to cope, survive & re-organize. Google & other search engines, can give all access to large, well established, libraries; can't they?

[vagabondvet]

Old news: http://articles.latimes.com/1999/aug/24/business/fi-3145

They don't call it a correction for nothing.

[suec03]

So this is at least the second time Filene's has filed for bankruptcy reorganization under chapter 11. It should have been covered in 1999, and it was; this new 2009 bankruptcy should be covered, and it is.

[timnel]

They are not a bank or an auto company so they mine as well close up shop as they do not qualify for a bail out

[westreal]

This is one store I hope survives. I've bought cheap clothing there for years and they hold up pretty well and are very fashionable. Will not be happy to see them go away.

[chris250480]

Its too bad to hear this as I used to shop at filene's basement regularly. I guess though, its not too surprising since, like most others, i've cut back a little bit and have been spending more time seeking bargains online. In fact using online coupon and deals sites has helped me get some great prices recently. I especially like ZingSale and shop it to me since they send me emails when things i want go on sale. http://www.zingsale.com