Syms, Filene’s Unit Seek Bankruptcy Protection

Discount retailer Syms Corp. and its subsidiary Filene's Basement have filed for Chapter 11 bankruptcy protection and plan to liquidate their operations.

Syms had acquired Filene's Basement out of bankruptcy protection in the spring of 2009 for $62.4 million, but had struggled to turn the chain around.

CEO Marcy Syms said in statement on Wednesday that increased competition from department stores, private label discounters and the economic downturn weighed on the companies. She says the bankruptcy filing and a planned liquidation was considered the best way to maximize value for shareholders.

The petitions were filed in the U.S. Bankruptcy Court for the District of Delaware.

Syms, based in Secaucus,  had announced in May that it was exploring strategic options, including a potential sale.

Syms New Jersey locations include Cherry Hill, Secaucus, Woodbridge and Paramus. Filene's Basement has no New Jersey stores according to their website.

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