Filenes Basement is on the selling block. The famous northeastern off-pricer's owner, Retail Ventures Inc., disclosed in a regulatory filing today that the 25-store subsidiary “will be classified as held for sale.”
The move follows a decision in January to close 11 under-performing locations and attempts to rework store leases to shore up its financial condition. Columbus, Ohio-based Retail Ventures noted in the regulatory filing that the chains performance “has continued to deteriorate significantly.”
In recent weeks Filenes Basement was seen as sliding toward a possible
bankruptcy filing because the retailer was not paying its vendors.
Women's Wear Daily had reported that an ad hoc creditors committee
could force Filenes into an involuntary bankruptcy.
Retail Ventures Inc., the
holding company that operates Filenes and discount footwear retailer
DSW Inc., is not expected to be included in the bankruptcy. However, WWD reported that RVI guarantees certain obligations under a
loan agreement between Filene's and its bankers.
