K&G Grabs Filene's from the Bargain Bin

Men's Wearhouse K&G affiliate wins a bidding war for Filene's Basement.
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After a nine-hour bidding war reminiscent of a manic close-out sale on Christmas Eve, an affiliate of

Men's Wearhouse

(MW)

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)

and

Vornado Realty

(VNO) - Get Report

.

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

.

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