Syms Corp. (“Syms”) and Filene’s Basement, LLC, (“Filene’s”) together with 2 associated debtors (the “Debtors”) filed  voluntary petitions under Chapter 11 of the Bankruptcy Code on November 2, 2011  in the Bankruptcy Court for the District of Delaware.  The Honorable Kevin J. Carey has been assigned to the case.  The Debtors have moved to have the cases administratively consolidated under the Filene’s Basement, LLC case (Case No. 11-13511).  However, each of the Debtors has filed its own, separate list of its largest unsecured creditors.   This  initial note provides the list of the 20 largest unsecured creditors for each of Filene’s and Syms.

The Debtors’ Lists of Holders of Largest Unsecured Claims

The Debtors have chosen not to file a consolidate list of largest creditors.  Instead, each of the Debtors has filed a list of the holders of its largest unsecured claims. The list for each of Filenes and Syms  is set forth below.  The information provided by the filing of separate lists is enlightening.

Syms’ largest creditors are heavily populated by trade creditors – 15 out of the 20.  On Filene’s list, 11 of the 20 largest unsecured creditors are landlords and only 7 are trade creditors with 3 of them at the bottom of the list.   This likely is indicative of the inability of Filene’s to obtain or maintain trade credit for inventory .   After two prior trips with Filene’s to bankruptcy court, not too many credit managers would have been anxious to take any substantial credit risk.

Filene’s reliance of “landlord lending” also is indicative of Filene’s decision to liquidate.  Once the liquidation option became the fait accompli, the landlords became the involuntary lenders of choice.

Filene’s List of its 20 Largest Unsecured Creditors

Listed Creditor Name Nature of Claim Status Amount
01 Pension Benefit Guarantee Corporation Pension Contingent, Unliquidated Unknown
02 Phillips-Van Heusen Corp Accounts Payable $846,006
03 Murray Klein, Stanley Zabar Property Lease $660,743
04 Teachers Insurance and Annuity Association
of America-College Retirement Equities Fund
Property Lease $571,368
05 Rosenthal & Rosenthal Factor $519,729
06 4 USS LLC Property Lease $448,436
07 Teachers Insurance and Annuity Association
of America-Real Estate Account (MAZZA GALLERIE
Property Lease $349,180
08 Quest 28 Millbury LLC Property Lease $323,652
09 L. Friedland and M. Friedland Property Lease $293,750
10 American Freeholds Property Lease $286,891
11 Cejon, Inc. Accounts Payable $219,570
12 JLP-Aventura, LLC Property Lease $214,654
13 LC Libra, LLC Accounts Payable $184,589
14 CK Jeans Accounts Payable $176,431
15 CPT NP Building, LLC Property Lease $159,142
16 Manhasset Venture, LLC Property Lease $147,991
17 VNO Bergen Mall LLC Property Lease $146,774
18 Appareltex USA Inc Accounts Payable $143,448
19 Bridal and Company Accounts Payable $141,000
20 Hanesbrands Inc. Accounts Payable $122,149

Syms’ List of its 20 Largest Unsecured Creditors

Listed Creditor Name Nature of Claim Status Amount
01 Pension Benefit Guarantee Corporation Pension Contingent, Unliquidated Unknown
02 Peerless Clothing AccountsPayable $2,928,036
03 Dawson Forte Cashmere AccountsPayable $763,941
04 Rosenthal & Rosenthal Inc Factor $738,907
05 Milberg Factors, Inc. Factor $417,376
06 Mystic Incorporated AccountsPayable $326,536
07 Samsonite, LLC AccountsPayable $325,900
08 Hart Schaffner Marx AccountsPayable $323,200
09 Warnaco/CK Underwear AccountsPayable $227,012
10 Hickey Freeman AccountsPayable $220,220
11 S. Rothschild & Co. AccountsPayable $209,479
12 Forsyth Of Canada AccountsPayable $208,311
13 Phillips-Van Heusen AccountsPayable $206,227
14 Sterling Factors Corp. Factor $185,475
15 Carolee LLC AccountsPayable $184,392
16 VF Sportswear, Inc AccountsPayable $177,631
17 Swank Inc AccountsPayable $175,102
18 Gruner & Co., Inc. AccountsPayable $173,400
19 Jones Apparel Group Factor $173,339
20 Columbia Sportswear Company AccountsPayable $163,947

Bankruptcy Rule 1007(d) provides that a debtor shall file “a list containing the name, address and claim of the creditors that hold the 20 largest unsecured claims… .” Fed. R. Bankr. P. 1007(d). The list does not include: (1) persons who come within the definition of “insider”); or (2) secured creditors, unless the value of the collateral is such that the unsecured deficiency places the creditor among the holders of the largest unsecured claims.

The Top Unsecured Creditor List is never to be considered a waiver of any defense to or “allowability” of a listed claim or an admission of the amount of any listed claim. It is common for the amount of the claims to shift and sometimes a claim that is initially is undisputed is later disputed. Creditors should always consult the official claims register.