Loehmann’s Exits Chapter 11

Loehmann’s Holdings Inc. (New York) said it has completed its restructuring and emerged from Chapter 11 bankruptcy proceedings. As part of that process, the retailer eliminated all $110 million of its long-term bond debt and secured $45 million in exit financing from Wells Fargo Bank N.A.

Loehmann’s also announced that Loehmann's ceo Jerald Politzer, who guided the company through this successful bankruptcy process, has chosen to leave the company. Joe Melvin, coo and cfo, will assume the role of interim CEO.

“As was our goal, we have significantly reduced our debt through the Chapter 11 process and have emerged a stronger, more financially secure company better positioned to address the opportunities and challenges of the marketplace,” said Melvin. “We look forward to rededicating ourselves to building Loehmann's into an even more exciting shopping destination for our existing customers and tapping into a whole new customer base who appreciates the value and brands we bring to them.”

Loehmann’s sells designer and brand-name women's fashion apparel, accessories and shoes, and men's and children's apparel and furnishings at discount prices. It currently owns 40 stores in 11 states and Washington, D.C.