FILENE'S BASEMENT FINDS A NEW OWNER

According to the “New York Post” (and my sources) Filene's Basement is going downtown and upscale.

The clothing chain, which escaped liquidation as it filed for Chapter 11 this week, has a new owner that aims to please city dwellers with deep fashion commitment but shallow pockets. They plan to sell more luxury goods at rock-bottom prices.

“While Filene's Basement has long specialized in delivering luxury cast-offs, its new owners will angle for ever-bigger chunks of that inventory, said New York real-estate mogul Stanley Chera.

"When top-tier stores have trouble selling merchandise, that helps us pick up the pieces," Chera said "We think it's a tremendous opportunity, people are more bargain-conscious now, and we think that's a trend that's going to continue."

Chera's firm, Crown Acquisitions, is partnering with Chetrit Group to buy Filene's Basement for $22 million. Under the deal, Crown will buy 17 of the company's 26 stores. While it has scant experience operating retail companies (Chera is a real estate mogul in NY), Crown plans to hire "top talent" to run the chain.

A key problem for Filene's Basement (on its second trip to bankruptcy court since 1999) was that it strayed from its core, city-dwelling customers, Chera told the Post.

We hear they are going to put $25 million into the company to beef up inventory and marketing for stores like the flagship on Union Square.

Crown and Chetrit are in talks to open a Filene's Basement on the Upper East Side (they say).

Chera saves the day for Filene’s Basement