Sign of the Times. Filene’s Basement Could Be Forced Into Bankruptcy

March 25, 2009 • Fashion


According to WWD, off-price retailer Filene’s Basement Inc. is in some serious trouble.

Apparently, they Filene's could be
at risk for an involuntary bankruptcy because it seems to not be paying its vendors or communicating with them in any manner.

Lawrence C. Gottlieb, chair of the bankruptcy and
restructuring practice at Cooley Godward Kronish, said, “My
understanding is that the company is not returning any phone calls to

Bob Carbonell, executive vice president and chief
credit officer at Bernard Sands Credit Consultants, said, “We have
clients who have not been paid since January. Filene’s management is
not returning their calls nor giving any answers via e-mails as to when
they will be paid.”

An ad hoc creditors committee could possibly force Filene’s into an
involuntary bankruptcy. The basic requirements for
such a move are that the involuntary debtor has not been paying bills
when due and that there are at least three creditors owed payments.

Filene’s Basement, which operates 25
locations, opened in 1909.

Source: WWD

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