A fashion institution will close its doors in January 2012. Filene’s Basement, known for its annual “Running of the Brides,” which offered deeper discounts than usual on designer special occasion dresses, announced it will begin to liquidate stores in preparation for its closing. The company filed for bankruptcy earlier this month.

Filene’s Basement was the brainchild of Edward Filene the son of Filene’s Department Store founder William Filene. Edward came up with the idea to sell excess items from his dad’s department store in the basement. The first Filene’s Automatic Bargain Basement opened in 1909 in Boston and proved so popular that soon other retailers were bringing Edward their surplus, overstock, and closeout merchandise, making Filene’s Basement the first off-price store.

Edward came up with the unique Automatic Mark Down System that lowered the price of items the longer they went unsold. So each price tag was dated, indicated the day the merchandise first went on sale. After a certain number of days, the price was automatically reduced 25 percent, then after a certain number of more days it was reduced 50 percent, then 75 percent. If it still didn’t sell, the item was given to charity.

In 1929, Filene, Abraham & Straus, and Lazarus became the founding members of Federated Department Stores, and alliance that would last more than half a century. Edward died in 1937 but his store continued to thrive and the Bargain Basement expanded to other cities. During the Depression, consumers flocked to Filene’s and business was so good that the profits from the Bargain Basement were able to cover the salaries of all the employees of the main department store. Then during World War II, as the Nazis advanced on France, Parisian designers shipped their collections to the Boston Basement for American shoppers.

In 1947, the Bargain Basement introduced its first bridal gown sale which became a signature event, making national –and international—news as prospective brides mobbed the store in hopes of finding designer clothes for an absurdly low price. Because there were no dressing rooms, and wouldn’t be until 1991, women would try clothes on in the aisles.

While the Bargain Basement may have enjoyed success during the Great Depression, the recent recession was a different story, due to changes in business—after all, most top designers and retailers now have outlet or discount stores of their own.

Retail consultant James Dion notes, “Filene’s Basement had built the niche of discount retail. But in the last two or three years, just about everybody else has invaded that space. It’s unfortunate but unavoidable.” In the end the Basement couldn’t compete with the size and deep pockets of many of the country’s biggest department stores.

So bargain hunters have about a month left to experience the fun of bargain hunting at Filene’s Basement stores, after which these iconic American stores close for good.