Filene’s Basement in Chapter 11
Home & Textiles Today Staff -- Home Textiles Today, May 4, 2009
Wilmington, Del. -- Filene’s Basement filed for Chapter 11 bankruptcy protection here today.
The company also announced it has agreed to sell 17 of it 25 stores to an affiliate of Crown Acquisitions, including its flagship stores in Boston and Union Square. The transaction is subject to court approval.
Crown Acquisitions will operate the stores under the Filene's Basement name and will retain the chain's value merchandising model, the company said.
“This transaction provides an excellent opportunity to continue the Filene's Basement tradition of top-quality apparel at low prices in most of the chain's marquee locations," said Scott Rusczyk, president of FB Acquisition II, the Buxbaum Group affiliate that acquired Filene's Basement last month.
The company expects an auction to take place in approximately five weeks during which the court will consider other offers for the 17 stores as well as offers for the remaining stores and the retailer’s other assets.