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Syms, Vornado To Buy Filene's Basement

The Associated Press

NEW YORK (AP) — Discount retailer Syms Corp. and Vornado Realty Trust won an auction for the discount chain Filene's Basement, a Filene's executive said Monday.

The price tag was $62.4 million, according to Alan Cohen, Filene's chief restructuring officer. A court hearing on Wednesday should make it official, he said.

Filene's is operating under Chapter 11 bankruptcy protection. Earlier in the auction process, Men's Wearhouse was announced as the buyer. But other bidders objected to the result last week and accused Men's Wearhouse of failing to meet the auction requirements.

A judge directed Filene's last week to reopen the process.

Men's Wearhouse did not immediately return a call for comment.

Filene's Basement was founded more than a century ago in Boston as a place for the Filene's department store to sell excess merchandise. In May, it followed other distressed retailers including Mervyn's, Steve & Barry's and Circuit City into bankruptcy amid the recession.

Syms shares rose 56 cents, or 8.9 percent, to $6.87 during afternoon trading.