On Tuesday, the U.S. Bankruptcy Court in Manhattan approved an order authorizing a joint venture formed by SB Capital Group, LLC, Tiger Capital Group, LLC, and A & G Realty Partners, to conduct “Going Out of Business” sales in each of Loehmann’s 39 locations in 11 states and the District of Columbia. More than $65 million of current in-season inventory and new arrivals from many of the top designer names will be liquidated during the sale, which begins January 9.
Fixtures, Equipment Also for Sale
Loehmann’s began operating in 1921 when Frieda Loehmann opened the first store in Brooklyn. Loehmann made her rounds to designer’s showrooms, buying their overstocks, cancellations and samples at a fraction of the original wholesale price. A trendsetter at a time when women rarely assumed that role, Frieda Loehmann’s forward thinking and innovative approach to retail set the standard for what became an entire industry.
The “Back Room” was a Loehmann’s exclusive, featuring American and European designer selections all at bargain prices. The legendary Back Room was a favorite fashion destination for generations of stylish women.
More recently, declining economic conditions in the retailer’s key markets of California, New York, Florida and the Midwest adversely affected Loehmann’s operations. The company’s performance was also impacted by intense competition from other larger off-price and outlet retailers, as well as the e-commerce channel. In November, Loehmann’s tried to sell its business as a going concern, but was unable to secure meaningful bids. On December 15, Loehmann’s filed for Chapter 11 bankruptcy protection for the third time in its history.
Daniel Kane, managing partner of Tiger Group, said, “We invite the public to shop early to get the best deals on a wide range of current designer merchandise at liquidation prices. New inventory will be arriving daily from Loehmann’s distribution center, assuring shoppers an incredible selection.”
In addition to the liquidation of merchandise inventories, fixtures and equipment from all 39 stores as well as the company’s Rutherford, N.J. distribution center will be sold. Loehmann’s stores range from 15,000 to 60,000 square feet in size, and average 28,000 square feet.