SECAUCUS, N.J., June 18 /PRNewswire-FirstCall/ -- Syms Corp (Nasdaq: SYMS), a leading off-price retailer, announced today that following the receipt of Bankruptcy Court approval, Syms consummated its previously announced acquisition of substantially all of the assets of Filene's Basement in Filene's Chapter 11 bankruptcy proceedings.
Under its asset purchase agreement with Filene's Basement, Syms, through a wholly-owned subsidiary, acquired the vast majority of the current operating Filene's Basement store leases, store fixtures and inventory and is focused on maintaining the Filene's Basement name and tradition. The total consideration to Filene's Basement amounted to approximately $65 million plus certain additional costs of Filene's Basement that were assumed by Syms.
Vornado Realty Trust (NYSE: VNO) provided a portion of the funding for this transaction. A joint venture (unrelated to Syms) 50% owned by Vornado paid approximately $16.8 million to terminate the venture's existing Downtown Crossing lease with Filene's Basement in Boston. Further, Vornado funded approximately $8.2 million in connection with Syms agreeing to amend Vornado's lease assumed by Syms at 4 Union Square South in Manhattan to provide, among other things, for a minimum $1.5 million increase in annual rent. The lease between Vornado and Filene's Basement at Vornado's Bergen Town Center in Paramus, New Jersey was also assumed by Syms.
Marcy Syms, President and Chief Executive Officer of Syms Corp, stated: 'This is an excellent strategic opportunity for Syms. Syms has been in business for 50 years, and Filene's Basement for 100 years. Our businesses are highly complementary. We have long respected Filene's Basement as a worthy competitor and have the utmost respect for the institution and its traditions, brand and incredible customer loyalty. We are confident that leveraging Filene's assets with Syms' infrastructure will provide for a stable and profitable business and will position Filene's for renewed growth. This is a win for Educated Consumers, a win for Syms, a win for the vast majority of Filene's employees who will be offered employment by a Syms subsidiary, and a win for the economy. We are pleased to welcome a wonderful management team and loyal employee base into the Syms family.'
Filene's Basement filed for Chapter 11 bankruptcy protection on May 4, 2009. The sale of Filene's assets was effected pursuant to Section 363 of the Bankruptcy Code.
