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)
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
in May after being acquired by private equity firm
Buxbaum Group
.
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