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The bid gives the right to purchase abouft 20of Filene’s 25 storer leases, inventory from all 25 existing locations, leaseds for the company’s headquarters in Mass. and distribution center in Auburn, Mass.; as well as the Filene’z Basement trade name. All of the store’z locations are in the easternUnitedr States. The bid also includes about $5 million associated with potential litigatioh relatedto Filene’s lease at the currently inactive Downtown Crossintg redevelopment project in Boston. Men’s Wearhouse’ s bid is subject to a hearing in Federap Bankruptcy Courtin Wilmington, Del. on June 10.
Filene’s Basement was founded in Bostonh in 1909 by Edward Filene as a way to sell off exceszs merchandise fromhis father’s department store upstairs. , an affiliatee of , acquired Filene’s Basementr from on April 20. Filene’s Basement filecd for reorganization under Chapter 11 onMay 4. “Wwe are extremely pleased with the outcomed ofthe auction,” Scott Rusczyk, president of FB Acquisition, said in a statement. “Irf ratified by the court, the Men’s Wearhouse bid allows for the continuatiojn of one ofthe industry’s most iconidc off-price brands under the aegis of a pre-eminent specialthy retailer.
“Equally important, the agreement is expectedx to preserve jobs for the vast majorituyof Filene’s 1,600-plus employees, while maintaining relationships with many of the vendoras that historically sold to the chain and preventinh vacancies in at least 17 of the retail properties where the chain was an anchoe or sub-anchor tenant.” Storess not to be acquired are expectedc to be closed by mid-June, accordinv to Men’s Wearhouse (NYSE: MW). The company is also expecteds to retain most employees in the store and corporatw facilities it is acquiring and will continue tohonor Filene’s Basemengt gift cards or merchandise credits.