K&G Grabs Filene's from the Bargain Bin

After a nine-hour bidding war reminiscent of a manic close-out sale on Christmas Eve, an affiliate of Men's Wearhouse(MW Quote) walked away with bankrupt Filene's Basement for $67 million.

K&G Acquisition purchased 17 of the store leases, inventory from all of Filene's locations, and leases for the company's headquarters in Burlington, Mass., and distribution center in Auburn, Mass. It will also own the Filene's Basement trade name -- for what that's worth.

K&G will retain the majority of Filene's 1,600 employees.

The purchase still needs to be approved in bankruptcy court on June 10.

The offer blew away bids from Crown Acquisitions and a group made up of Syms(SYMS Quote) and Vornado Realty(VNO Quote).

The remaining five to eight Filene's stores are expected to be nabbed in an auction within the next several weeks.

Filene's Basement sought bankruptcy protection in May after being acquired by private equity firm Buxbaum Group.