Filene’s Basement (Burlington, Mass.) has been purchased by an affiliate of Men’s Wearhouse (Houston), during a nine-hour bankruptcy auction for assets of the off-price chain. K&G Acquisition Corp. offered $67 for 17 to 20 of Filene’s store leases; inventory from all 25 existing locations; leases for the company’s headquarters and a distribution center in Auburn, Mass.; and the Filene’s Basement trade name.
The Men’s Wearhouse’s bid is subject to a hearing in Federal Bankruptcy Court in Wilmington, Del. on June 10.
“We are extremely pleased with the outcome of the auction,” says Scott Rusczyk, president of FB Acquisition II, the Buxbaum Group (Agoura Hills, Calif.) affiliate that acquired Filene’s Basement from Retail Ventures in April and then filed to reorganize under Chapter 11 of the Federal Bankruptcy Code on May 4.
Men’s Wearhouse competed in the auction against an affiliate of New York-based developer Crown Acquisitions, as well as a group consisting of off-price retailer Syms and Vornado Realty Trust. Stores that will not be acquired are expected to be closed by mid-June. Since the company has agreed to acquire all inventories, no liquidation sales are planned.