US fashion group Retail Ventures (RVI) has announced the disposition of its Filene's Basement subsidiary to FB II Acquisition, a newly formed entity owned by liquidation firm Buxbaum Group.

Filene's Basement has recently experienced significant liquidity problems, and in January Retail Ventures closed 11 of its 36 stores nationwide after landlords were unwilling to renegotiate leases on some of its weaker locations.

Filene's Basement has retained Pachulski, Stang, Ziehl & Jones LLP as counsel and Alan Cohen as chief restructuring officer, a statement said.

RVI will not realise any proceeds from the transaction.

RVI's guarantee of all of Filene's Basement's obligations under its secured credit agreement, which currently has a balance of $14.2m, will continue notwithstanding today's disposition, Retail Ventures said. The retail group has an arrangement with lenders under which it has agreed to acquire a $7.5m 'Last Out Participation'.