On Again, Off Again
Jul 1, 2009 12:00 PM
The sale of bankrupt Filene's Basement provided a bit of drama to the retail sector in early June. Apparel seller Syms Corp. and Vornado Realty Trust won the bankruptcy court auction — but only after a previous bid was rejected by the court. Syms and Vornado ultimately agreed to pay $62.4 million in cash for the chain. The two emerged as the unlikely winners after a $67 million bid from K&G Acquisition Corp., an affiliate of Men's Wearhouse, was rejected by the bankruptcy court judge. Filene's Basement operates 25 stores throughout the U.S., including prime locations in the heart of the Union Square and Chelsea neighborhoods in Manhattan. The chain filed for bankruptcy in May of this year, reportedly because of liquidity concerns. For its part, Vornado has a long history of investing in retailers. For example, it owns a 32.7 percent interest in toy retailer Toys ‘R’ Us.
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