Bargain Basement Goes Under

Christmas has come early for bargain-hunting shoppers. Filene’s Basement and parent Syms Corp. filed for Chapter 11 bankruptcy Wednesday with plans to immediately start holding going-out-of-business at their 46 stores.

The liquidation means the death of two companies that for decades have offered designer apparel, shoes and accessories at bargain prices, long before the term “recessionista” was coined. Filene’s Basement was founded in Boston in 1909, and Syms, of Secaucus, N.J., opened its first store in 1959.

It also means an end to Filene’s famous “Running of the Brides” event, where future brides and their friends rush into stores the chance to snag designer wedding gowns at deeply discounted prices.

Despite an economic climate favorable to discount retailers, the companies have struggled since Syms bought Filene’s out of a prior Chapter 11 case two years ago.

“We have been faced with increased competition from large department stores that now offer the same brands as our stores at similar discounts; a proliferation of private label discount chains; a decline in buying opportunities as brand name labels have reduced overruns by improving their supply chain management–all combined with the worst economic downturn in our lifetimes,” Syms Chief Executive Marcy Syms said in a statement.

To capitalize on the upcoming holiday season, Syms will be asking the U.S. Bankruptcy Court in Wilmington, Del., to let the retailers kick off going-out-of-business sales. They expect their liquidation to last through January.

The retailers operate stores in Connecticut, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania, Texas, Virginia and Washington, D.C.

As a result of the liquidation, 1,555 Filene’s employees and 910 Syms employees will find themselves out of a job this holiday season.

“I want to express my appreciation to our employees, many of whom have devoted their careers to Syms and Filene’s Basement, for their loyalty and hard work,” Marcy Syms said.

You can read a more detailed description of Syms’ struggles, as well as its plans for bankruptcy, in an affidavit here.