Retailers, consumers and prices
Check Out Line: Filene’s Basement not low enough
The U.S. discount clothing retailer, which was acquired last month by an affiliate of the Buxbaum Group, said it has been hurt by the recession’s severe impact on the fashion retail sector.
Specifically, with everyone else forced to cut prices, Filene’s are no longer low enough to attract customers.
“The retail reaction to the recent economic downturn has narrowed the price differential between department stores and the value retailers and has substantially reduced consumer buying,” the retailer said in an affidavit.
The 100-year-old chain, known for its off-price clothing and annual “running of the brides” wedding gown sales, also filed for bankruptcy once before in 1999, but emerged the following year.
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