June 8, 2009 (FinancialWire) — Filene’s Basement said that an affiliate of Men’s Wearhouse (NYSE: MW) emerged as the winning bidder in a bankruptcy auction for assets of the off-price chain.

The affiliate, K&G Acquisition Corp., offered a total of $67.0 million.

The price will cover the purchase of 17 to 20 of Filene’s store leases, inventory from all 25 existing locations, leases for the company’s headquarters in Burlington, Massachusetts, and distribution center in Auburn, Massachusetts.

Men’s Wearhouse will also acquire the Filene’s Basement trade name. The winning bid, which is subject to a hearing in Federal bankruptcy court in Wilmington, Delaware on June 10, includes around $5.0 million associated with potential litigation revolving around Filene’s lease at the currently inactive Downtown Crossing redevelopment project in Boston.

Men’s Wearhouse competed in the auction against an affiliate of New York-based developer Crown Acquisitions, as well as a group consisting of off-price retailer Syms and Vornado Realty.

Under a ’stalking horse’ bid, Crown had agreed to purchase the trade name and leases for 17 stores, but not the inventories, for around $22.0 million.

Filene’s said that Men’s Wearhouse plans to retain most employees in the store and corporate facilities it is acquiring. The company is also expected to honor Filene’s Basement gift cards or merchandise credits, according to Filene’s.

Houston-based Men’s Wearhouse is a specialty retailer of men’s apparel with 1,284 stores.

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