Headlines

Loehmann’s Declares Bankruptcy for a Third Time

Retailer insists it will be “business as usual” during reorganization

Published

11 years ago

December 17, 2013

steve kaufman

Loehmann’s Holdings Inc. (The Bronx, N.Y.) has declared bankruptcy for the third time.

According to Women’s Wear Daily, the designer brand discounter of designer goods has signed a deal to sell all its assets for $19 million to Tiger Capital Group LLC (Boston), A&G Realty Partners LLC (Melville, N.Y.) and SB Capital Group LLC (Great Neck, N.Y.), all specialists in bankruptcy asset dispositions.

WWD said Loehmann’s had planned to file for Chapter 11 protection after the holiday season, but could no longer wait. Its liabilities had grown to as much as five times its assets.

The retailer is owned and operated by hedge fund Whippoorwill Associates Inc. (White Plains, N.Y.). A minority stakeholder is Istithmar Retail Holdings, the arm of the Dubaian government that helped finance Loehmann’s second exist from bankruptcy, in 2011. The 92-year-old retailer had its first one-year tour of bankruptcy in 1999-2000.

Loehmann’s currently operates 39 stores across 11 states.

Chairman Michael Appel said, “During this period, it will be business as usual…. Both in our stores and online, we will continue to provide our customers with their favorite fashions at great prices.”

Steven Newman, its ceo, has left the company.

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