Filene's Basement sold
April 21, 2009-- Home Textiles Today,
Columbus, Ohio -- Liquidator and turnaround firm Buxbaum Group has acquired Filene’s Basement from Retail Ventures Inc. through a new entity, Buxbaum FB II Acquisition Group.
RVI will not receive any proceeds from the disposition of Filene’s Basement's stock to the group and continues to guarantee Filene’s Basement's obligations under a $14.2 million secured credit agreement.
RVI said in a release it has signed a separate agreement with the chain’s lenders establishing that no demand will be made on the guarantee until the lenders have been repaid by Filene’s Basement “to the extent reasonably possible.”
RVI also stated: “Future plans for the operation of the Filene's Basement business are uncertain and will be controlled by Filene's Basement and its new owner.”
Alan Cohen, chairman of liquidation and appraisal firm Abacus Advisors Group, has been named chief restructuring officer for Filene’s Basement. Pachulski, Ziehl & Jones LLP has been retained as counsel.
RVI also said plans to enhance its own liquidity could include the sale or collateralization the common stock of its DSW footwear chain or a sale of equity by RVI. It noted there is no assurance such a transaction would satisfy all of its liquidity requirements.