Millennium Tower (Filene's) | 426 Washington Street | Downtown

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Re: Filene's

Some good news?

Boston Herald - April 23, 2009
New Filene?s Basement owner seen as rebuilding chain
By Donna Goodison | Thursday, April 23, 2009 | http://www.bostonherald.com | Business & Markets
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The new owner of Filene?s Basement was silent about its future yesterday, but retail observers say that the Buxbaum Group?s CEO is known more as a turnaround expert than a liquidator.

A possible scenario for the cash-poor, Burlington-based chain of 25 stores is that Buxbaum will seek to restructure the off-price discounter, which could involve closing more stores or disposing of certain parts of the business to save the company.

Whether a restructuring would take place through a Chapter 11 bankruptcy filing would depend on timing and liquidity, and whether creditors cooperate.

?My perspective is that the Buxbaum Group will try to find ways - whether through a formal restructuring or not - to help a company with a historic past of 100 years survive,? said Andy Moser of Westwood?s Kairos Capital Partners, which has collaborated with Buxbaum but isn?t involved in the Basement deal. ?Like any company that has troubles, there are often pieces that have to go away . . . so it certainly would not be uncommon to see that happen here.?

The Agoura Hills, Calif.-based Buxbaum Group declined comment, but a spokeswoman for Filene?s Basement said the company wasn?t liquidating.

Late Tuesday, Retail Ventures said it disposed of its Basement subsidiary to a newly formed entity owned by Buxbaum. The Ohio company, which had owned the Basement since 2000, essentially handed over the keys to Buxbaum, acknowledging it won?t receive any proceeds and still is on the hook for the Basement?s debt.

Buxbaum Group CEO Paul Buxbaum, who was chairman of Ames Department Stores in the 1990s, has 30-plus years of clothing industry experience. His company stepped in when L.A.-based Rampage faced Chapter 11 bankruptcy and after a two-year overhaul, the junior clothing brand was sold to Iconix Brand Group for $45.9 million in 2005. Last month, Buxbaum was named CEO of Haggar Clothing Co.
Article URL: http://www.bostonherald.com/business/general/view.bg?articleid=1167482
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Re: Filene's

Filene's Basement looked shaky even when it opened the Back Bay branch. The evidence? A uniformed doorman attending the entryway.
 
Re: Filene's

Boston.com - April 23, 2009
New Filene's Basement owner is reviewing options
April 23, 2009 01:31 PM

Buxbaum Group, the California company that acquired Filene's Basement through its FB II Acquisition Corp. subsidiary earlier this week, said today that it is reviewing all available options for Filene?s Basement, once a retail icon in the Hub.

Buxbaum's press release included a statement from Scott Rusczyk, president of FB II Acquisition Corp.

No changes to the operations, management, or board of directors of Filene?s Basement have been made, he said. ?We are very pleased with the acquisition, and we are working with existing management and the company?s advisors to review all available business options.?

(By Chris Reidy, Globe staff)
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Re: Filene's

In all seriousness, I think it was part of their attempt to upscale the brand. Velvet clad doormen. How stupid can you get. The second word in the title is...BASEMENT! Mold. Fat cranky cashiers. People changing clothes in the aisles, with their lumpy white flesh muffining out everywhere. Urine soaked front steps. Asbestos. AUTOMATIC MARKDOWN. DEEEAAAALLLLLLS!!!

Honestly, these guys put the dumb in dumb ass.
 
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Re: Filene's

^^ Wouldn't be great (at least temporally) if the new owners told Hynes, "Fuck it! Put up some plywood walls, hook us up to the grid and throw a big tent in the pit. We are going open in a month!"
 
Re: Filene's

Great idea! Put it at "Kensington Place" though. Filene's Caravanserai.
 
Re: Filene's

This is really going to hurt Menino during the elections. This is probably more wishful thinking but I think he may solve this before it becomes a big campaign issue.
 
Re: Filene's

Filene?s Basement Chain Said to Prepare for Bankruptcy Filing


By Lauren Coleman-Lochner and Jonathan Keehner

April 27 (Bloomberg) -- Filene?s Basement, the century-old clothing chain, may seek bankruptcy protection this week, according to two people with knowledge of the plan.

A filing may come as early as tomorrow, said the people, who declined to be identified because the information isn?t public. There are several parties interested in buying assets out of bankruptcy, one person said.

Former Filene?s Basement owner Retail Ventures Inc. said April 21 that it transferred the unit to Buxbaum Group, a company that appraises and liquidates assets, for no proceeds. FB II Acquisition, the Buxbaum affiliate formed to acquire Filene?s Basement, said in a statement two days later that it was reviewing ?all available? options for the chain, which sells discounted designer goods.

Mariellen Burns, a spokeswoman for Filene?s Basement, declined to comment. Buxbaum referred queries to Filene?s.

Retail Ventures, based in Columbus, Ohio, said in January it would close 11 of Filene?s Basement?s 36 stores and ?aggressively? renegotiate terms on the remaining leases. Filene?s Basement?s sales fell 9.5 percent to $422 million in the year ended Jan. 31.

Edward Filene opened his Boston bargain basement in 1909 to clear out merchandise from his family?s department store, according to the company?s Web site.

Filene?s Basement filed for Chapter 11 bankruptcy in August 1999, and was bought by a predecessor of Retail Ventures the following year. Retail Ventures also owns the DSW shoe chain.

Buxbaum, based in Agoura Hills, California, is a liquidator and appraiser of retail and wholesale inventories, and provides turnaround, expansion and other consulting services.
 
Re: Filene's

Boston.com - May 4, 2009
Filene's Basement files for Ch. 11 reorganization
May 4, 2009 10:12 AM

WILMINGTON, Del. - Discount retailer Filene's Basement says it has filed to reorganize under Chapter 11 bankruptcy protection, less than two weeks after its new owner said it was reviewing "all available options."

The privately held company also reached a deal that will allow a Crown Acquisitions affiliate to buy 17 of its 25 stores, including its flagship locations in Boston and New York. The agreement is subject to a bankruptcy court auction, which is expected in about five weeks.

The auction will allow other companies to submit bids for the 17 stores, as well as for the rest of the Filene's Basement locations and the chain's other assets.

New York-based Crown, a real estate and asset management company, plans to continue running the 17 stores under the Filene's Basement name.

Buxbaum Group, a California-based liquidator, acquired Filene's last month through an affiliate company, FB II Acquisition Corp. The sale came after the previous owner, Retail Ventures Inc., said the chain was experiencing "significant liquidity problems."

Filene's Basement, known for its "Running of the Brides" wedding gown sale, was founded more than a century ago in Boston. (AP)
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Re: Filene's

I'm guessing that "flagship location in Boston" at this point refers to the Boylston Street store. There's no asset in Downtown Crossing for a bidder to actually buy.
 
Re: Filene's

They still hold the lease, which probably carries a cash value.
 
Re: Filene's

The Downtown Crossing lease is a valuable asset.Once the rebuilt store gets rebuilt, The Basement's contractual rent (per publilcly filed documents) for the next 25 plus years is one dollar per year. Additionally, until the store reopens the developer is required to make montly payments to The Basement. The amount of the monthly payment was never publicly announced but given the major business disruption, I am sure that it is major $.
 
Re: Filene's

But does that lease contract survive a bankruptcy by the tenant?
 
Re: Filene's

The Hancock just sold for 650 Million and thats 1.5 million worth of square footage..............How much is Filenes project worth at this point? LONG LONG LONG term they should make their money back. Hynes grand kids will probably see the profits. Hynes and Vornado need to dilute their equity in this project and just build it.
 
Re: Filene's

Ron Newman said:
But does that lease contract survive a bankruptcy by the tenant?
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Yes, if the Bankruptcy Trustee wants to keep it. My guess is that the lease and the liquidated damages that the developer ought to be paying F.B. on the delay might be among the most valuable assets. Plus F.B. might even have a consequential damages claim against the developer.
 
Re: Filene's

^AKA you're probably more likely to see Aliens set up their first Earth colony on this site rather than see the proposed tower anytime soon.
 
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