NEW YORK CITY — After the auction for troubled retailer Filene’s Basement was re-opened last Friday, a partnership between off-price retailer Syms Corp. and Vornado Realty Trust has been declared the winning bidder and its bid of approximately $65 million has been approved by the Bankruptcy Court handling the restructuring. The partnership will take control of a vast majority of the currently operating Filene’s Basement location and the retailer’s inventory. It was not said whether Filene’s headquarters and distribution buildings were included in the purchase.
In addition, a separate joint venture in which Vornado owns a 50 percent interest has paid approximately $16.8 million to terminate its existing lease with Filene’s Basement at the Downtown Crossing project in Boston. Vornado also provided approximately $8.2 million in funding to amend its lease at 4 Union Square South in Manhattan; the lease was assumed by Syms. The agreement also stipulated, among other things, a minimum $1.5 million annual increase in rent. The Filene’s Basement lease at Vornado’s Bergen Town Center property, located in Paramus, N.J., was also assumed by Syms.
Last week, an affiliate of Men’s Wearhouse won the initial auction for Filene’s Basement, acquiring 17 of the retailer’s 20 store leases, inventory from all 25 existing locations, the company’s Burlington, Mass., headquarters, and its Auburn, Mass., distribution center for $67 million. However, the auction was contested by two other bidders, including Syms, and a new auction was scheduled.
Syms Corp. operates a chain of 32 discount apparel stores located in 13 states throughout the country. It purchased Filene’s Basement through a wholly owned subsidiary. Initial plans are to continue the Filene’s brand.
— Coleman Wood