Fashion Law: Loehmann Files For Chapter 11 Bankruptcy
It is with great sadness that today’s Fashion Law Column is about fashion retailer, Loehmann’s, Chapter 11 Bankruptcy. Our team at Fashionboss adores Loehmann’s. This off-price retailer was known to host designer brand pieces. The company was founded in 1921 by Frieda Loehmann and her son Charles, in Brooklyn, and in the end, ran 40 stores in 11 states.
Loehmann’s Holdings, Inc. filed its petition for chapter 11 bankruptcy in Manhattan bankruptcy court on or about December 2013. This was the clothing store’s third time filing for bankruptcy.
Loehmann’s hired three liquidation firms – SB Capital Group LLC, Tiger Capital Group LLC and A&G Realty Partners LLC – to assist with the sale of substantially all of its assets. Pursuant to the bankruptcy petition, Loehmann’s has between $50 million to $100 million in assets and $100 million to $500 million in debt. The company’s liquidations efforts are being used to maximize shareholder recovery.
Competitors of Loehmann’s, such as Filene’s Basement, Syms and Daffy’s, have also recently gone out of business.
For further reading, the case is In re: Loehmann’s Holdings Inc, U.S. Bankruptcy Court, Southern District of New York, No. 13-14050.
Tell us what you think. Will Loehmann’s follow their lead and shut down for good?