FILENE’S BASEMENT PURCHASED BY K&G ACQUISITION CORP. FOR $67 MILLION

BURLINGTON, MASS. — Burlington, Mass.-based retailer Filene’s Basement has been purchased at a bankruptcy auction by K&G Acquisition Corp., an affiliate of retailer Men’s Wearhouse, for $67 million. K&G will acquire 17 of the retailer’s 20 store leases; inventory from all 25 existing Filene’s Basement locations; the leases for the company’s Burlington headquarters and Auburn, Mass., distribution center; and the Filene’s Basement trade name. The purchase price also includes approximately $5 million for potential litigation associated with the retailer’s lease at Downtown Crossing, a currently inactive redevelopment project located in Boston. Stores that were not acquired as part of the auction are expected to be closed by mid-June.