Filene’s Basement sold to liquidator

Columbus, Ohio Retail Ventures has sold its Filene's Basement division to liquidation and turnaround firm Buxbaum Group, saying the Boston-area discount department store has "significant liquidity problems" and its future is uncertain.

Retail Ventures said late Tuesday it won't book any proceeds from this transaction. Filene's Basement has retained Pachulski, Stang, Ziehl & Jones LLP as counsel and Alan Cohen as chief restructuring officer.

Last week, the 25-store chain's owners said sales "continued to deteriorate" since the company closed 11 stores in January. The company was founded more than a century ago in downtown Boston as a place for Filene's department store to sell excess merchandise.

Retail Ventures, which also owns and operates more than 250 DSW discount shoe retail stores, said it will still guarantee all of Filene's Basement's obligations under its secured credit agreement, which has a balance of $14.2 million.

Lenders have agreed not to demand repayment immediately.