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Syms Closes Filene’s Sale

Syms Corp. buys bankrupt Filene's for $65M. Separately, Eddie Bauer received some help from the Delaware bankruptcy court.

Syms Corp. last week closed on its transaction to purchase the assets of bankrupt Filene’s Basement for $65 million, nearly three times the stalking horse bid of $22 million made by Crown Acquisitions in early May.

Sym’s wholly owned subsidiary, SYL LLC, acquired the majority of Filene’s Basement store leases, store fixtures and inventory.

Stifel, Nicolaus & Co. Inc. was the financial adviser to Syms. In addition, Vornado Realty Trust provided a portion of the funding for the transaction.

Marcy Syms, president and chief executive officer of Syms, said, “This is an excellent strategic opportunity for Syms…. We are confident that leveraging Filene’s assets with Syms’ infrastructure will provide for a stable and profitable business and will position Filene’s for renewed growth.”

More details about the integration of Syms and Filene’s Basement are expected this week. Crown was named the stalking horse bidder for Filene’s on May 4 as the off-price retailer previously owned by Retail Ventures Inc. filed for Chapter 11 bankruptcy protection.

Separately, Eddie Bauer Holdings Inc. on Thursday received Delaware bankruptcy court approval of its request to access $90 million of its $100 million debtor-in-possession financing facility from credit lenders Bank of America, GE Capital Corp. and CIT Group/Business Credit Inc. Final approval for the entire financing facility is set for July 7.

The specialty chain filed its Chapter 11 petition on Wednesday, the same day it entered into a stalking horse agreement with Rainier Holdings, an affiliate of CCMP Capital Advisors, for the sale of Bauer’s operation for $202 million in cash.