Filene's Basement files Chapter 11; 17 stores to be sold

Share this article:

Filene's Basement today filed to reorganize under Chapter 11 of the federal bankruptcy code in the US Bankruptcy Court for the District of Delaware. It also announced an agreement with an affiliate of Crown Acquisitions to purchase 17 of the chain's 25 stores, including the flagship stores in Boston and Union Square, NY.

The contract with Crown is subject to a bankruptcy court auction under which additional offers for the 17 stores, the remaining Filene's Basement stores, and other Filene's assets will be solicited. The auction is expected to be held in approximately five weeks, subject to the approval of the court.

Crown, which is based in New York, intends to continue to operate the stores under the Filene's Basement name, while maintaining the chain's value merchandising model.

Advisors to Filene's Basement include Alan Cohen, who was engaged as chief restructuring officer, and Pachulski, Stang, Ziehl & Jones LLP, which was retained as counsel. Morris Missry and Scott Lesser of Wachtel & Masyr LLP and Arthur Steinberg of King & Spaulding advised Crown Acquisitions in connection with this matter.

When reached for comment, Cohen said that any decisions about Filene's marketing operations would be considered by the new owner.

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Multichannel Marketing

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Multichannel Marketing

7 Ways to Take Your Marketing Strategy to the Big Leagues

7 Ways to Take Your Marketing Strategy to ...

A game-winning omnichannel strategy must be seamless, synchronous, and symbiotic.

Pet World's Multichannel Marketing Is a Whole Other Animal

Pet World's Multichannel Marketing Is a Whole Other ...

The family owned pet store redesigns its website to bring the in-store experience online.

Complexity's What Marketers Got, Simplicity's What They Want

Complexity's What Marketers Got, Simplicity's What They Want

Customer insights managers want campaign management tools to remain easy to use, even as they up their games with multi-layered campaigns.