Home Textiles Today - Filene's Basement creditors retain counsel, advisor

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Filene’s Basement creditors retain counsel, advisor
By James Mammarella -- Home Textiles Today, 4/8/2009 2:19:00 PM
New York – As the stalled economy makes it harder even for some off-price retailers to compete, Filene’s Basement is in the midst of critical discussions with the vendor community.


Attorney Lawrence Gottlieb of Cooley Godward Kronish LLP confirmed to HTT that the firm is representing an ad hoc committee of creditors of Filene’s Basement. “Mainly vendors,” said Gottlieb, adding that the group “will include some landlords” as well. He stressed the ad hoc nature of the committee, noting that the retailer has not made any indications, positive or negative, concerning any potential bankruptcy filing.


Additionally, the unsecured creditors retained the firm of Loughlin Meghji + Co., a boutique restructuring firm, as financial advisor, said Ken Simon, managing director at Loughlin Meghji.


Neither Gottlieb nor Simon would comment on any schedule or timetable


The retailer ended 2008 with 36 stores – but in January started closeout sales in 11 stores and shut them down by the end of February. At the time, Filene’s Basement told HTT it had sought “solutions such as fair rent reductions” on those 11 units but had not obtained “sufficient relief.”


Parent company Retail Ventures Inc. (RVI) reported that for the year ended Jan. 31, Filene’s Basement had sales of $422.1 million, down 9.5% from the prior year. Comps fell 2.6%. RVI had total sales $1.89 billion.