The bidding war to claim the bankrupt Filene's Basement stores has finally ended with an affiliate of Men's Wearhouse coming out on top. It was announced Sunday that MW's affiliate company, K&G Acquisition Corp., purchased up to 20 leases once belonging to the discount chain for $67 million. In addition to the actual leases, the purchase included all inventory and leases for the
company's Burlington, Mass., headquarters and a distribution center in Auburn,
Mass., as well as an additional $5 million contribution to cover legal costs for a lawsuit
over Filene's lease at the Downtown Crossing redevelopment project in
So what will Men's Wearhouse do with their newly acquired property? Luckily, not much. Reps for K&G claim that they will continue operating most stores in the same way—discounting brand name merchandise throughout the year. The Chicago Tribune reported that the two downtown locations are scheduled to remain open and operating in the same manner. Six stores scattered in Massachusetts, New Jersey, and Maryland were not part of the purchase and will eventually close.
K&G Acquisition Corp. beat out several other competitors in the drawn out bidding war, including Crown Acquisitions and a partnership between retailer Syms and Vornado Realty Trust. It was unclear whether the other companies in the race for the Filene's Basement brand would have kept the stores running in the same way, though the original bid of $22 million put out by Crown Acquisitions was for the store leases and trade name but did not include the brand's inventory. So thank you Men's Wearhouse for allowing the discount chain to continue it's beloved operations!
Article Source: The Chicago Tribune
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