Loehmann's

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Loehmann's Holdings, Inc.
Former type Private
Industry Retail
Fate Liquidation
Founded 1921
Defunct 2014
Headquarters Bronx, New York
Key people Steven Newman, CEO (2011-) [1]
Products Clothing, footwear, bedding, furniture, jewelry, beauty products, housewares
Owner(s) Whippoorwill Associates, Inc.
Website www.loehmanns.com

Loehmann's is a chain of off-price department stores in the United States. The chain is best known for its "Back Room", where women interested in fashion can find designer clothes at prices lower than in department stores. While the largest portion of its client base has historically been women, the chain does offer shoes, accessories, and men's clothing.

Loehmann's is currently in the process of liquidating its remaining inventory and closing its stores following a December 2013 bankruptcy filing. Liquidation sales began January 8, 2014.[2]

History and operations

Frieda Loehmann's original store was located in this building at 1476 Bedford Avenue in the Crown Heights neighborhood of Brooklyn, New York City. It is now a gospel church.

In 1921, Frieda Loehmann, a former department store buyer, and her son Charles, opened the first Loehmann's store in a former automobile showroom on the northwest corner of Bedford Avenue and Sterling Place in Brooklyn, New York. She bought seasonal overstocks from top New York designers and sold them at bargain prices. Freida refused to expand into additional stores, but her son opened a second store, also called Loehmann's, on Fordham Road in the Bronx in 1930, using the same sales strategy. Frieda continued to run the original store, buying the building and moving into living quarters above it.[3]

Soon after her death in 1962, the Bedford Avenue store was closed,[3] and the Charles C. Leohmann company went public and began to expand to a wider area.

Loehmann's was acquired by Associated Dry Goods in 1983. In 1986, May Department Stores merged with Associated Dry Goods. Two years later, the new May Department Stores Co. sold the 77-unit chain to an investor group led by a Spanish concern, Sefinco Ltd., and the Sprout Group, a division of Donaldson, Lufkin & Jenrette.

The company was taken public again in May 1996.

At its peak in 1999, the company had approximately 100 stores in 17 states.[4]

Multiple bankruptcies

In May 1999, Loehmann's declared Chapter 11 bankruptcy. It emerged from bankruptcy protection on September 6, 2000. In 2004, it was acquired for $177 million by Arcapita (formerly Crescent Capital), a private investment firm complying with Islamic Banking law. In May 2006, Arcapita sold Loehmann's for $300 million to Istithmar, a private equity firm based in Dubai. The chain now has stores in 12 U.S. states.

On November 15, 2010, Loehmann's filed for Chapter 11 again after failing to reach a debt extension with its creditors. It also announced the closing of at least eight stores.[5]

By the end of February 2011, Loehmann's emerged from bankruptcy protection. New York-based Loehmann's said it secured $45 million in financing while saying its restructuring eliminated $110 million in long-term bond debt, $14 million in interests and included $23 million in other cost reductions.[6]

On December 16, 2013, Loehmann's filed for Chapter 11 for the third time, listing assets at $100 million but debt at $500 million.[7][2] During bankruptcy, Esopus Creek Value Series Fund LP purchased Loehmann’s intellectual property assets and customer lists starting in March 2014, Madison Capital Holdings is seeking to buy 39 leasehold interests, and Tiger Capital Group, A&G Realty Partners, and SB Capital Group purchased the inventory, furniture and fixtures, accounts receivable, and cash component.[8] Barney's New York will open its downtown store at the Loehmann’s site at Seventh Avenue and 16th Street in 2017 when Loehmann's lease expires.[8] It is the same building where Barney Pressman started his discount men’s business in 1923.[8] Loehmann's began going out of business sales on January 8, 2014.[9][10]

See also

References

Notes

  1. ↑ "Loehmann's Names Steven Newman Chief Executive Officer", PRNewswire, NEW YORK, June 7, 2011
  2. ↑ 2.0 2.1 Young, Vicki M. (December 16, 2013). "Loehmann's Files Chapter 11". WWD. Retrieved 16 December 2013. 
  3. ↑ 3.0 3.1 Morris, Montrose. "Walkabout: Brooklyn Riches from Rags" Brownstoner (5/20/2010)
  4. ↑ Dribben, Melissa (28 April 2008). "Low-cost fashion stalwart's last sale". The Philadelphia Inquirer. Retrieved 10 January 2014. 
  5. ↑ Loehmann’s files for bankruptcy Retrieved November 15, 2010
  6. ↑ "Discount retailer Loehmann's emerges from Chap. 11" Business Week (March 1, 2011)
  7. ↑ http://www.bloomberg.com/news/2013-12-16/loehmann-s-designer-discounter-files-for-bankruptcy.html
  8. ↑ 8.0 8.1 8.2 "Esopus Gets OK on Loehmann's IP". WWD. 8 January 2014. Retrieved 8 January 2014. 
  9. ↑ http://www.ajc.com/news/business/retailer-loehmanns-going-out-of-business/ncgKF/
  10. ↑ http://www.washingtonpost.com/business/loehmanns-to-begin-liquidation/2014/01/08/28d13dc2-7894-11e3-a647-a19deaf575b3_story.html

Further reading

External links


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