Syms emerges from Chapter 11 bankruptcy protection
NEW YORK (AP) — Discount retailer Syms Corp. said Monday that it completed its financial restructuring and emerged from Chapter 11 bankruptcy protection after closing all of its stores and liquidating their merchandise.
The emergence completes a 10-month bankruptcy process for Syms and its Filene's Basement subsidiary. The reorganized company, which was renamed Trinity Place Holdings Inc., will try to sell off the company's commercial real estate and license its intellectual property for the benefit of its shareholders.
Trinity expects to satisfy the negotiated payments to creditors required by its reorganization plan. Most of the funds needed to emerge from bankruptcy protections were raised through the sale of $25 million of new shares of common stock.
The company said it expects the stock to continue to be traded over the counter, but its ticker will change to "TPHS."
Trinity said its current business plan includes the sale of 16 commercial real estate properties and the development of its Trinity Place property in Lower Manhattan.
The company said it also hopes to license its intellectual property, including its rights to the Filene's Basement trademark, the Stanley Blacker and Maine Bay brands, and the intellectual property related to its famous "Running of the Brides" event.
Syms filed for bankruptcy protection in November amid tough competition from other retailers and weak consumer spending.
The company had acquired Filene's Basement out of bankruptcy protection in the spring of 2009 for $62.4 million, but struggled to turn the chain around. The recent restructuring was the third bankruptcy protection involving the Filene's Basement chain.