When Syms Corp. and Filene”™s Basement opened a co-branded store in Elmsford last fall, there was a concerted effort to drive consumers to the reinvigorated discount retailer. This followed Syms”™ $62.4 million acquisition of the financially strapped Filene”™s in 2009.
Now, its days could be numbered.
On Nov. 2, Secaucus, N.J.-based Syms Corp. filed for Chapter 11 bankruptcy protection and will undergo a liquidation of its stores.
In a letter to the retailer”™s “loyal customers,” Marcy Syms, CEO, wrote: “In the face of very challenging economic conditions, our board of directors has for some time been exploring every strategic option available and, finally, came to the conclusion that a liquidation was in the best interests of all our stakeholders.”
In a statement released to the Business Journal, spokesman Steven Alschuler said “The company has asked for court approval to retain an agent to begin going-out-of-business sales, which would be expected to run until approximately January.”
In its second-quarter earnings statement, Syms cited a net loss of $11.5 million compared to a net loss of $10.9 million in the second quarter last year.
The company and wholly owned subsidiary Filene”™s Basement operated 47 “off-price” apparel stores as of Aug. 27, the report indicated.
