Filene’s auction reopens after controversy resolved
New York City A federal bankruptcy judge has cleared the way for Filene’s Basement asset auction after resolving objections from two bidders.
According to a Thursday report by the Associated Press, the auction will resume on Friday, after having been delayed for prematurely declaring a winner.
Filene's Basement, which is operating under Chapter 11 bankruptcy court protection, held a nine-hour auction last Friday and announced on Sunday that an affiliate of Men's Wearhouse had won with a $67 million bid.
Two other bidders -- Crown FB LLC and discount store Syms -- objected to the result earlier this week and accused Men's Wearhouse of failing to meet the auction requirements. Crown called the auction "a sham." A judge directed Filene's on Wednesday to reopen the process.
The auction is scheduled to resume Friday morning at the Wilmington, Del., office of Filene's Basement's bankruptcy lawyers. The case is in Delaware bankruptcy court.