Filene's Calls it Quits
November 28, 2011-- Home Textiles Today,
WILMINGTON, DEL. - Filene's Basement has filed for Ch. 11 bankruptcy here for the third and final time, announcing it will liquidate its stores along with apparel discounter Syms, which bought Filene's out of bankruptcy a little over two years ago in partnership with realty/investment firm Vornado.
Filene's, which also restructured under Chapter 11 bankruptcy in the 1990s, expects GOB sales to conclude in January, according to a statement. Together, Filene's and Syms operate 46 stores, most of them on the East Coast.
In addition to the impact of the slack economy, ceo Marcy Syms cited stepped up competition from department stores and "a decline in buying opportunities as brand name labels have reduced overruns by improving their supply chain management."
In its filing, the company listed $236 million in assets and approximately $94 billion in liabilities.
The company in its filing said vendors and factors have restricted trade credit in recent months, and factors had begun requiring additional security on Filene's orders.
For the six-month period ended Aug. 27, the company posted a loss of $16.7 million. In the previous fiscal year, ended Feb. 26, 2011, the loss before income taxes was $51.7 million, according to the filing.
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