Syms, Filene’s Basement Going Out of Business

Discount retailer Syms Corp. (Secaucus, N.J.), which operates the Filene's Basement subsidiary, has filed for Chapter 11 bankruptcy protection with plans to liquidate both its Syms and Filene’s stores.

The bankruptcy is the third and likely final trip through bankruptcy for Filene's Basement, a chain known for its “Running of the Brides” events, reports the Chicago Tribune.

The retailers are unable to reorganize after facing tightened credit and “significant” operating losses over the past two years, says interim chief financial officer Gary Binkoski. Syms acquired Filene's Basement out of a prior bankruptcy.

“Therefore, they have determined that the best way to maximize value for the benefit of all interested parties – including creditors and stockholders – is a prompt and orderly wind-down of their retail businesses that will capitalize on the upcoming holiday shopping season, followed by a separate process to maximize the value of Syms' owned real estate,” Binkoski said in court papers.

The retailer began exploring its option in May. As of September, the companies reported $236 million in assets and $94 million in liabilities.

Syms sells discounted designed apparel, shoes and accessories at 46 Syms and Filene's Basement branded stores.