Apparel seller Syms Corp. and Vornado Realty Trust won the bankruptcy court auction for off-price retailer Filene’s Basement this week. Syms and Vornado agreed to pay $62.4 million in cash for the chain.
Filene’s Basement operates 25 stores throughout U.S., including prime locations in the heart of Union Square and Chelsea neighborhoods in Manhattan. The chain filed for bankruptcy in May of this year, reportedly because of liquidity concerns. The Syms/Vornado bid comes in the wake of a $67 million bid from K&G Acquisition Corp., an affiliate of Men’s Wearhouse, which was rejected last week by the bankruptcy court judge.
Vornado might have been moved to take part in the bid because of its Downtown Crossing mixed-use redevelopment project in Boston. Filene’s Basement, which has occupied the historic location for 99 years, was scheduled to anchor the 300,000-square-foot retail portion of the development, but temporarily closed the store in 2007 because of
Vornado, a diversified REIT, already owns a 32.7 percent interest in toy retailer Toys “R” Us.
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