Filene's Basement is closing 11 stores. One thing I find alarming in this is the allegation that Filene's couldn't get rent reductions at these stores. There's little detail here. Was the company asking for too much? What exactly did it need? It seems in this environment that landlords should be working to keep retailers in place, unless they really think the retailer has no future. If that is the case, this is a bad sign for Filene's Basement.
The chain, famed for its annual "Running of the Brides" wedding gown sale, has been unable to negotiate rent reductions at 11 locations and plans to shutter those stores by the end of February, according to Julie Davis, general counsel of Retail Ventures Inc., the parent company of Filene's Basement. In addition to the Framingham location, stores to be closed include three in Maryland, two in Illinois, two in Pennsylvania, and one each in New Jersey, New York, and Virginia.
"In this economy, we are approaching landlords to effect rent reductions or other economic solutions to help us support these stores," Davis said. "We're still hoping there are some landlord negotiations that might help us keep stores."
Bankruptcies and Liquidations:
- Jan. 7, Goody's liquidates, closing 287 stores
- Jan. 8, Against All Odds files for bankruptcy protection, operates 64 stores overall, plans to close West Coast stores
- Jan. 13, Shane Co. files for bankruptcy, operates 23 stores
- Jan. 14, Gottschalks files for bankruptcy, operates 58 stores
- Jan. 16, Circuit City to Liquidate, closing 567 stores
Potential Bankruptcies & Liquidation Impact: 999 stores
- Jan. 8, New York & Co., 50 stores
- Jan. 8, Macy's, 11 stores
- Jan. 9, Supervalu, 50 stores
- Jan. 13, Cost Plus, 26 stores
- Jan. 21, Filene's Basement to Close 11 Stores, 11 stores
Total Closings: 148 stores
Potential Impact of All Announcements to Date: 1,147 stores