Some Filene's Basement stores in Bay State to Close

Bay State Filene’s to close
Saugus, Peabody Hyannis on list
By Donna Goodison | Tuesday, June 9, 2009 | http://www.bostonherald.com | Business & Markets


Filene’s Basement stores that aren’t part of the proposed $67 million sale of the chain to Men’s Wearhouse will close by the middle of this month and their employees will be laid off, according to the retailer’s current owner.

Houston-based Men’s Wearhouse was the winning bidder for the Basement’s assets at a bankruptcy auction Friday. It has set up a new subsidiary, K&G Acquisition Corp., for the acquisition and plans to capitalize it with at least $35 million in equity, according to court documents.

The purchase, which is subject to bankruptcy court approval Wednesday, includes 17 to 20 of the Basement’s 25 stores and the lease for the currently closed flagship location in Boston’s Downtown Crossing. It also includes the chain’s Burlington headquarters and Auburn warehouse.

Basement stores in Boston’s Back Bay, Newton, Watertown and Braintree are among the locations that Men’s Wearhouse is proposing to buy and continue operating, while stores in Hyannis, Peabody and Saugus will be closed.

Since Men’s Wearhouse is acquiring all of the Basement’s inventory, no liquidations sales will be held at the soon-to-be-shuttered locations.

Men’s Wearhouse declined comment on its Basement plans until the deal receives court approval.

The Basement has about 1,600 employees. Men’s Wearhouse is expected to retain most of those working at the stores and corporate facilities that it’s buying, according to Buxbaum Group affiliate FB Acquisition II, the Basement’s current owner, which acquired the chain from Retail Ventures in April.

Men’s Wearhouse also is expected to honor all Basement gift cards and merchandise credits.
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