Wilmington, Del. Filene's Basement says it has filed for Chapter 11 bankruptcy protection, less than two weeks after its new owner said it was reviewing "all available options." Filene’s filed a Chapter 11 petition Monday in U.S. Bankruptcy Court in Wilmington, Del., citing more than $100 million in liabilities and $50 million to $100 million in assets.
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 City. The agreement is subject to a bankruptcy court auction, which is expected in about five weeks.
Buxbaum Group, an Agoura Hills, Calif.-based liquidator, acquired Filene's last month through an affiliate company, FB II Acquisition Corp. The sale came after previous owner Retail Ventures said the chain was experiencing "significant liquidity problems."