Syms Lands Filene’s

Court approves $62.4 million purchase of off-pricer Filene's Basement by Syms and Vornado.

A Delaware bankruptcy court on Wednesday evening approved the sale of the assets of bankrupt Filene’s Basement to SYL LLC.

This story first appeared in the June 18, 2009 issue of WWD.  Subscribe Today.

SYL is a wholly owned subsidiary of Syms Corp. Syms and its financial investor, Vornado Realty Trust, on Monday won the bidding for Filene’s at $62.4 million for 23 stores, as well as fixtures and inventory.

The auction took a strange twist for an entity relatively small in size.

The initial bidding was won by The Men’s Wearhouse Inc. affiliate K&G Fashion Superstores for $67 million and between 17 and 20 stores. However, both Syms and the stalking horse bidder, Crown Acquisitions, complained to the bankruptcy court that its approved bidding procedures were not adhered to and the court reopened the bidding, this time with Men’s Wearhouse and Crown bidding together.

Though the MW-Crown combination had a higher offer, it lost out to Syms, which agreed to take on more stores. The original stalking horse bid was for $22 million.

The transaction is expected to close today.