Filene's Basement: Out of the Basement and into Bankruptcy Court
The prices were low, but apparently not low enough.
After a drop in sales and "significant liquidity problems" that led to a sale to the Buxbaum Group, Filene's Basement has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware.
The nation's oldest discount retailer also struck a deal that would see a Crown Acquisitions affiliate purchase 17 of Filene's Basement's 25 stores, including the original location in Boston's Downtown Crossing.
It's not the first time the chain has filed for bankruptcy. In fact,
Retail Ventures, Inc., which owned Filene's Basement until recently,
purchased the company out of bankruptcy in 2000.
Things didn't go well during Retail Venture's ownership, however, and
the company ended up dumping Filene's Basement by basically paying
Buxbaum Group, a company specializing in retail liquidations, to take
the discount retailer off its hands.
A bankruptcy auction is expected in about five weeks.
Hopefully the company won't have to discount its assets as much as it discounted the brand-name luxury goods it was known for.See Also:
Filene's Basement Seeks Bankruptcy Protection Again (DealBook
Filene's Basement Files for Chapter 11 Protection (CNBC)