Filene's offers stock for expansion plans

Discount Store News, Sept 23, 1991

Filene's Offers Stock For Expansion Plans

WELLESLEY, Mass. - Only three months after an initial public offering, Filene's Basement Corp., plans an additional offering for 3.1 million shares of common stock.

In a statement filed with the SEC, Filene's set "accelerated growth" as a priority.

The stock offering will yield an estimated $25 million, which Filene's will use toward expansion plans. Filene's reported that beginning in 1992 it will open 10 to 12 new stores per year. Most of the growth will come in existing markets. Since 1988, the firm has opened a total of 12 stores.

Its newest market is the Chicago metropolitan area where it will open three stores in October, including one site that will mirror its flagship Boston store. Filene's plans to expand further into Boston in the coming years with up to 12 stores slated for the area.

According to Keith Osher, director of budget and planning, proceeds from the initial offering in April went toward repaying a $35 million bank loan used in 1988 for the leveraged buyout from its then parent, Federated Department Stores.

In 1990, Filene's Basement had $400 million in sales, compared to $357 million in 1989. Net income was $12 million in 1990, compared to $5.5 million in 1989. Comparable store sales rose by 7% last year.