Secaucus, NJ – Discount retailer Syms Corp. and its subsidiary Filene’s Basement have filed for Chapter 11 bankruptcy protection and plan to liquidate their operations.
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Syms acquired Filene’s Basement out of bankruptcy protection in the spring of 2009 for $62.4 million, but struggled to turn the chain around. They own and run 46 stores mostly in the Eastern U.S. under the Syms and Filene’s Basement names.
CEO Marcy Syms said in statement that increased competition from department stores that are offering the same brands as its stores at similar discounts and an increase in the number of private label discounters weighed on the companies. She also cited fewer opportunities to buy brand name labels due to tighter inventory management and the economic downturn.
She says the bankruptcy filings were “the results of a process that has taken place for several months.” Syms, based in Secaucus, N.J., had announced back in May that it was exploring strategic options, including a potential sale.
Marcy Syms said the company’s board decided that the bankruptcy filing and liquidation was the best way to maximize value for those with a stake in the company such as suppliers owed money.
Syms began in 1959 under founder Sy Syms. The off-price retailer bought excess merchandise directly from manufacturers at a discount. Off-price retailers did well during the recession as consumers traded down and spent less money, but the category has been weaker in the recovery as some shoppers are returning to luxury goods.
Filene’s Basement started in 1909 with founder William Filene.
The liquidation is anticipated to run through about January. A store closings schedule will be determined when the liquidation of merchandise is complete.
The petitions were filed in the U.S. Bankruptcy Court for the District of Delaware.
Syms and Filene’s will be jointly administered during the bankruptcy. The companies are seeking court approval to hire someone to handle the merchandise liquidation and for approval to conduct going out of business sales.
Too bad….. Back when I was in Yeshiva and you ran in to everyone you knew at the bash we would say that Syms stood for: So You Missed Seder
over expansion easy money
many companies suffered the same fate
Such a shame. My friend’s father knew him very well and worked for him. Sy Syms was a real mentch. When he first started out a lot of manufacturers wouldn’t sell to him.
Then, when he was really big and could pick and choose his vendors, he still would buy from the people who helped him out in the beginning, even though, in many cases, they were in a decline and he really didn’t want or need their merchandise, so he would give them his business.
It’s also a shame because it’s a great store for Yidden. They often carry the kind of clothing we need for Shabbos and every day, even when it’s not very mainstream.
Marcy – You should have changed your motto to “A cheap consumer is our best customer!”
Is the owner Jewish?
Both Cy and Marcy Syms were big baalei tzadakah so this is a sad outcome for her. May she only know mazel from here on.
Oh no…I have a credit for about $50 which I haven’t used…I think it’s high time to get to one of their stores and see if I can use it…If I can… I guess something will be better than nothing..if not oh well…
The last two suits and a tuxedo I purchased where from SYMS…almost everything including these all wool suits was imported. …they appeared ok and with great tailoring (not done there) they look good. I had noticed a decline in the quality of the mens dress shirts..with all cotton being very hard to find. Some of the dress shirts were in colors that were really way out there…plenty of lime green and even some orange.
It doesn’t sit well to hear that a retailer with many local stores is closing…many people will be out of work and that is hitting at a very bad economic time.. overall sad news.
I am in the trade and, sorry to say, most of what they sold was garbage and other peoples mistakes. They were an honest firm but their customers were suckers.
Sy Syms was Jewish. His original name was Merns. He went into competition with his father, who owned Merns, a discount clothing place in the same part of lower Manhattan.
Filene’s Basement lost their way when they decided to expand into malls. The original store in the basement of Filene’s in downtown Boston was unique. I don’t know why Marcy thought Syms could make a success of what was just another Marshalls wannabe. The last couple of times I went to Syms, they had nothing to interest me. I was out of there in 5 minutes.
How can you call us suckers? You act as we were forced to buy our clothing at Syms. My entire wardrobe is from Syms. I saved 1000’s of $’s. I got great stuff at great prices. I surely will miss them. Hope they have a store closing sale.
Nebech, a big loss for the frum consumer. They were never the same once they got hooked up with Filenes.