Syms and Filene's going out of business

Apparel pioneer Syms Corp. is calling it quits, more than a half century after it became one of the first retailers to offer consumers off-priced name-brand clothing.

The company filed for Chapter 11 bankruptcy Wednesday and plans to close its 46 stores, located mostly in the eastern United States. A statement cited the economy and "increased competition" from large department stores and private-label discount chains.

The closing also includes Filene's Basement stores, which Syms bought in 2009.

The company has a Syms Clothing/Filene's Basement in Westbury and a Filene's Basement in Manhasset. Filene's LLC owns and operates 21 stores in the Northeastern, Middle Atlantic, Midwest and Southeast regions, according to a company regulatory filing.

The Secaucus, N.J.-based company declined to say how many employees it has on Long Island. Liquidation sales are expected to last through January.

Syms, known for its motto, "An educated consumer is our best customer," was once a "mega retail brand," said Marshal Cohen, chief industry analyst at the NPD Group, a Port Washington-based market research firm. But he said the brand "fizzled out," overtaken by outlet centers, online shopping and frequent department store sales. "They were unable to inject enough capital and keep pace with the rest of the discounting retail environment," Cohen said.

Sy Syms, who died in 2009 at age 83, founded the company in 1959 in Manhattan's financial district. The chain debuted on Long Island in 1974, the company said.

One analyst has valued the company's real estate properties, including a Park Avenue location, at as much as $20 a share, according to Bloomberg News, more than double the company's stock price Wednesday.

Some customers in the Westbury parking lot Wednesday were stunned to hear about the planned closing. "Oh my God," said Lucy Arias, 51, a North Merrick hair stylist, who said she has patronized Syms for about 19 years. "It's not too expensive. It has a lot of different things."

"That's no good," said registered nurse and Baldwin resident Margaret Pierre, 58, who was putting a newly purchased winter coat into her vehicle. "They have good things and the prices are good."