Menino says marketing ploy at Filene's hurts Basement

Mayor Thomas M. Menino is upset at what he says is a marketing ploy that is taking away business from one of the city's most famed retailers.

The issue stems from a liquidation sale going on in the space above the Filene's Basement location at Downtown Crossing . That space used to house Filene's flagship department store, which has closed, and is being operated as a merchandise clearance center. Federated Department Stores Inc. , parent of the Macy's chain, bought Filene's, closing many stores, eliminating the name, and converting other locations to Macy's.

Menino said the clearance center is still using the Filene's name. That, along with the bargain prices being offered at the store, is keeping people from going downstairs to Filene's Basement, which is known for its discounts.

"A lot of folks there are looking for bargains," Menino said. "The Basement is suffering because people think that is the Basement."

A spokeswoman for Filene's Basement, which operates as a separate company, could not be reached for comment last night. A spokeswoman from Macy's also could not be reached for comment.

Macy's said last week that the clearance center in Downtown Crossing will close on Dec. 30.

The old Filene's space, which Federated sold as part of its takeover of the department store chain, is slated to become a retail, hotel, office, and residential project by developers John B. Hynes III and Vornado Realty Trust . Federated will hand over the property on Jan. 15, Hynes said.

Filene's Basement has a long-term lease at its Downtown Crossing location and has said it plans to remain there.

Keith Reed can be reached at reed@globe.com, and Thomas C. Palmer Jr. can be reached at tpalmer@globe.com.