The auction selling off the assets of bankrupt cut-price retailer Filene's Basement will reopen tomorrow (12 June) amid confusion over the process.

Men's Wearhouse affiliate K&G Acquisition Corp had been named as the winning bidder in the original auction of the retailer's assets, but reports suggested that the process had been started again after complaints from the losing bidders.

Court documents show that the auction will open again tomorrow morning in Delaware, with improved bids from rival bidders Crown Acquisitions and Syms.

The two companies had branded the auction process a "sham" in court filings, complaining that the Men's Wearhouse bid had been received after the official deadline, and did not comply with the auction requirements.

Men's Wearhouse had offered a total of US$67m for 17-20 Filene's Basement stores, assorted inventory, the company headquarters and a distribution centre, plus its trade name.