Filene’s Basement Files for Bankruptcy

By Kat Ahn on May 4th, 2009

filenes-basement-files-for-bankrupcy-1 When I was a child, I remember going to Filene’s Basement with my mother to find deals on handbags and clothing. Depending on how hard my mother searched for good-quality items, she’d always manage to find something that looked as though it cost way more than it actually did. This is why I’m in disbelief that this Massachusetts-based retail chain has filed for Chapter 11 bankruptcy protection. The Wall Street Journal reports that the department store chain has closed a deal to sell 17 of its 22 stores for $22 million.

Well, in theses Economic times, its not too surprising but it is an American retail institution that has been in business since 1908 when Edward A. Filene began selling surplus merchandise in the basement of his father’s store.

Filene’s is planning to sell its stores to Crown Acquisitions, a New-York based commercial real estate firm. Crown released a statement saying that it seek to acquire the Filene’s stores with the Chetrit Group. Filene’s is planning to hold an auction to sell off its remaining assets within the coming weeks.

In the world of discount retail, Filene’s has faltered against rival competitors such as TJ Maxx, Macy’s, Century 21 and Loehman’s. It looks like anyone who is looking for deals in designer items will have to look elsewhere.