Filene's Basement, an overstock retailer, similar to T.J. Maxx (TJX Co.) filed for Chapter 11 bankruptcy protection on Monday. The economic downturn has caused many retail bankruptcies recently including: Goody's Family Clothing, Circuit City stores, KB Toys, and Mervyn's. The filing reported $83.8 million in assets and $182 million in liabilities. Filene's basement was founded in 1909 as a discount off-shoot of the department store Filene's. It has been owned by different parent companies including Federated Department Stores which sold it to the St. Louis-based May Department Stores Co. In 2005 May Department Stores merged with Federated Department Stores which is now known as Macy's Inc.

It appears that Filene's Basement may emerge from bankruptcy under new ownership as real estate investors Crown Acquisitions and the Chetrit Group offered $22 million to purchase the name and leases of 17 of Filene's most profitable stores. The plan would be to operate the discount chain and focus on cast-offs from luxury goods makers.

Jeffrey Herrick