Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-Days after filing what it thought was the winning bid for Boston, MA-based Filene’s Basement,Men’s Wearhouse finds itself back at the drawing board, having dropped its $67 million winning bid. Stalking horse bidder Crown Acquisitions filed a motion accusing the men’s clothing company of violating the rules that a bankruptcy judge had set for the auction.

GlobeSt.com sister publication AmLaw Daily reports that Crown Acquisitions filed the motion on Tuesday, calling the auction “a travesty.” Crown and lawyers King & Spalding argued in the filing that Filene’s and attorneys Pachulski Stang Ziehl & Jones, as well as the creditor’s committee counsel ignored Crown’s complaints of violations because they believed the Men’s Wearhouse bid was the best one.

According to AmLaw Daily, the filing also alleged that locally based Men’s Wearhouse and its attorneys K&L Gates missed the bid application deadline, failed to fulfill conditions required of the bid, and conspired with Filene’s and the creditor’s committee to change its bid in the middle of the auction. The result is that Men’s Wearhouse has dropped its $67 million offer for Filene’s Basement. Another auction is scheduled for Wednesday, June 23.

Men’s Wearhouse chairman of the board and CEO George Zimmer declined to make specific comments about the suit or the pending auction at the company’s June 11 Q2 2009 conference call. “Since it’s a work in progress, and we’re involved in ongoing negotiations, I have nothing to say about it now, or later in the call,” he commented.

He did comment on how the Filene’s Basement acquisition might impact K&G, Men’s Wearhouse off-price brand. “We noticed they sell more women’s wear than we do,” he remarked. “They sell more sportswear. We have less urban.” Assuming the Filene’s Basement acquisition moves forward, “our default position still strengthens K&G, and we still see K&G as our primary growth vehicle moving forward,” he said.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.