Syms wins renewed Filene’s Basement auction

US: Syms wins renewed Filene’s Basement auction

By just-style.com | 16 June 2009

Cut-price apparel retailer Syms has emerged as the winner in the renewed auction of the assets of rival company Filene's Basement.

Syms' joint bid with developer Vornado Realty Trust of US$62.4m covers the leases for 23 Filene's Basement stores, along with the defunct company's trade name, inventory and distribution centre.

Rival bidders Men's Wearhouse and Crown Acquisitions submitted a higher bid of $64.9m, but only included the leases of 18 stores, potentially leaving more creditors with claims on the retailer.

Syms' acquisition is subject to ratification by the Bankruptcy Court in Delaware tomorrow (17 June).

The company said it expected to complete the deal, subject to that ratification, on Thursday.

Men's Wearhouse won the original auction last week, but the result was annulled and the auction reinstituted after complaints from losing bidders Syms and Crown Acquisitions.

Sectors: Apparel, Retail

Companies: Syms