June 02, 2009
Filene's warns of store closings, job losses
(Crain’s) — Close to 200 jobs are in jeopardy at Filene’s Basement if a pending sale of the two prominently located Chicago shops collapses.
The discount retail chain told the Illinois Department of Commerce and Economic Opportunity that it might have to close its stores at 1 N. State St. and 830 N. Michigan Ave. in upcoming months. That would result in the loss of a total of 157 jobs, a spokesman for Boston-based Filene’s Basement said. Layoffs could begin as soon as June 15, according to the Worker Adjustment and Retraining Notification Act filing.
When Filene’s Basement filed for Chapter 11 bankruptcy protection in May, it announced that it had agreed to sell two of its Chicago stores, as well as 15 others in the nation, to two New York investors. They are Stanley Chera, who has significant real estate holdings in Chicago, and Joseph Chetrit, co-owner of Sears Tower. The Chera-Chetrit venture would assume Filene’s existing leases.
The deal requires approval from a bankruptcy court judge.
Filene’s Basement has also asked for permission to close two suburban Chicago stores, according to a request filed with the U.S. Bankruptcy Court in Delaware. Filene’s said in that court document it was planning to close one store in the Village at Woodfield Green retail center in Schaumburg and another in the Orland Park Shopping Center.
