Thursday, May 31, 2012

Syms Selling All Owned Stores

"Discount clothing retailer Syms Corp. and its wholly owned subsidiary, Filene's Basement LLC, filed a plan of reorganization calling for Syms to continuing owning its real estate while it disposes of the properties.
The retailer filed for Chapter 11 reorganization last fall and liquidated the two chains earlier this year. It has either cancelled or is in the process of disposing of its leased store locations. Now, it plans to do the same for retail properties it owns
Syms cited a litany of woes that combined to undermine the two retail operations, including increased competition from large department stores offering the same brands at similar discounts; a proliferation of private label discount chains; decreased buying opportunities as manufacturers reduced overruns through improved supply chain management; together with what she described as the worst economic downturn in her lifetime.

Documents file with the Bankruptcy Court explain that "because Syms is solvent, under the Plan, Syms anticipates paying all its creditors in full… Syms will retain its real estate assets and own, manage, lease and dispose of them over time, in a non-distressed commercially reasonable manner, in order to maximize the value of these assets."

Filene's, on the other hand, is insolvent and Syms has agreed that Filene's creditors will share pro rata in a portion of the proceeds of Syms' assets."

Syms anticipates selling its parcels either "as is," i.e., vacant in certain cases, or after they have been leased to one or more commercial tenants and related improvements have been made. Syms anticipates that the disposition process could take up to four years.
Syms currently owns 17 stores totaling 1.53 million square feet
Fairfield, CT, 43,000
Ft. Lauderdale, FL, 55,000
Miami, FL, 53,000
West Palm Beach, FL, 112,000
Marietta, GA, 77,000
Norcross, GA, 69,000
Addison, IL, 68,000
Southfield, MI, 60,000
Cherry Hill, NJ, 150,000
Paramus, NJ, 77,000
Secaucus, NJ, 340,000
Elmsford, NY, 59,000
New York, NY, 57,000
Westbury, NY, 92,000
Williamsville, NY, 102,000
Berwyn, PA, 69,000
Houston, TX, 42,000

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