Syms has winning bid for Filene's Basement

(File photo: Tom Landers/Globe staff)

Discounter Syms has unseated Men's Wearhouse as the winner of the troubled Filene's Basement chain with a $62.4 million bid for the bankrupt bargain business.

But the future of the Downtown Crossing flagship, famed for its automatic markdown policy, is unclear, according to Terry Corrigan of Abacus Advisors, the firm overseeing the Basement's restructuring.

The offer is a joint venture with Vornado Realty Trust, the New York real estate firm which owns the Downtown Crossing property, and the proposal must be approved by a bankruptcy court judge on Wednesday.

The deal covers 23 stores, the Burlington headquarters, the Auburn warehouse, along with inventory and the Filene's Basement name.

However, it is not certain under the plan submitted whether Filene's Basement will remain at the Downtown Crossing property. The flagship has been shuttered since 2007 because of a stalled project by Vornado and other local developers to build a 39-story tower on the site.

Syms could not immediately be reached for comment. Vorando declined comment.

"We're very pleased with the outcome. The chain continues. Employees will keep the vast majority of the jobs," Corrigan said.

The transaction is expected to close immediately following approval from the bankruptcy court.

Men's Wearhouse, in a joint bid with Crown Acquisitions, had offered nearly $65 million for about 20 stores, leaving more claims from landlords. That lowered the value of their proposal, according to Corrigan.

Men's Wearhouse had initially been declared the winner of the 100-year-old Filene's Basement brand during the June 5th auction. But objections raised by the losing bidders, including Crown Acquisitions and Syms, led a judge to reopen the process.

Men's Wearhouse and Crown Acquisitions could not be reached for comment.

Filene's Basement filed for Chapter 11 last month and blamed its liquidity crisis on the economic downturn, underperforming suburban stores, credit problems, and the loss of the flagship store in Downtown Crossing.
(By Jenn Abelson, Globe staff)