The Men’s Wearhouse Inc. was unable to add Filene’s Basement to its retail portfolio Wednesday.
This story first appeared in the June 11, 2009 issue of WWD. Subscribe Today.
Instead, the men’s wear powerhouse has a new date Friday, when the auction for the assets of the bankrupt off-pricer will be reopened, according to Delaware bankruptcy court records.
The auction will begin at 9 a.m. Friday at the Wilmington, Del., offices of Pachulski Stang Ziehl & Jones, counsel for the bankrupt retailer, according to a notice filed in the case by Pachulski. A bankruptcy court hearing on the sale results, also in Delaware, will be held on Friday at 12:30 p.m.
At the first auction, an all-day affair that stretched into the evening last Friday, K&G Acquisition Corp., the Men’s Wearhouse affiliate that operates its K&G Fashion Superstores nameplate, was deemed the winning bid at $67 million. On Tuesday, both losing bidders, Syms Inc. and stalking horse Crown Acquisitions, filed objections stating the auction proceedings failed to adhere to the bidding procedures set by the bankruptcy court.
Crown went as far as to call last week’s auction a “travesty” in court papers. Marcy Syms, president and chief executive officer of Syms, said she found the proceedings “extremely disconcerting.”
Filene’s Basement was founded in 1909, and previously filed for Chapter 11 in 1999. It was acquired by Value City in 2000. Value City, which was acquired by Retail Ventures in 2003, went bankrupt and was liquidated in 2008. Crown was named stalking horse when Filene’s filed Chapter 11 last month.