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What a soap opera. Have you guys been following this Filene's Basement debacle over the last several weeks? First they're bought, then they're not. Then Men's Wearhouse buys them. Then they back out. Now they've been bought by Syms in collaboration with the real estate companies that own the big gaping hole in Downtown Crossing that Filene's was supposed to go back into.

Syms offered $62.4 million for the beleaguered business in a venture with New York real estate firm Vornado Realty Trust and Gale International, the two firms that own the downtown Boston property where the Basement has operated for more than 100 years. That location has been closed since 2007 because of a stalled $700 million redevelopment project that has been unable to secure financing.

The current lease runs through 2024 and requires Gale and Vornado to pay Filene’s Basement $500,000 a month until the flagship can reopen again in the redeveloped site.
With the development on hold, it would likely take at least two years to reopen the Filene’s Basement store, meaning Gale and Vornado would have to pay an additional $12 million during that period, an obligation they erased by participating in the acquisition.

I was pretty curious when the purchase happened as to why a real estate firm would want to buy an ailing retailer. But now it all makes sense.

For those of you that watched Amy Poehler's new comedy "Parks & Recreation" doesn't it seem like the entire premise of that show could be applied to the Downtown Crossing pit?

Unfortunately, I hafta travel for work (and need my legs), otherwise I'd gladly get drunk and fall down the pit if it meant someone would try to turn it into a park rather than leave it a big gaping hole.

Click (here) to read the rest of the article.



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1 Response to "Filene's Basement May Come Back to Dtown Crossing"

  1. Shawnna Said,

    no joke, the saddest day of my life was when the automatic markdown FB closed. what a shame it's turned into this crazy debacle.

    Posted on 6/18/09, 9:41 AM

     
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