Loehmann's

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Loehmann's Holdings, Inc.
TypePrivate
IndustryRetail
Founded1921
HeadquartersBronx, New York
ProductsClothing, footwear, bedding, furniture, jewelry, beauty products, and housewares.
Owner(s)Istithmar World
Websitewww.loehmanns.com
 
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Loehmann's Holdings, Inc.
TypePrivate
IndustryRetail
Founded1921
HeadquartersBronx, New York
ProductsClothing, footwear, bedding, furniture, jewelry, beauty products, and housewares.
Owner(s)Istithmar World
Websitewww.loehmanns.com

Loehmann's is a chain of off-price department stores in the United States.

Loehmann's is best known for its "Back Room," where women interested in fashion can find designer clothes at prices lower than in department or specialty stores. In recent years, Loehmann's has expanded its offerings to include shoes, accessories, and men's products.

History

In 1921, Frieda Loehmann, a former department store buyer, opened her first 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. Loehmann refused to expand her stores beyond Brooklyn and the Bronx. Soon after her death in 1962, the 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.

In May 1999, Loehmann's declared Chapter 11 bankruptcy. It emerged from bankruptcy protection on September 6, 2000.

In 2004, Loehmann's 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.[1]

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.[2]

References

  1. ^ Loehmann’s files for bankruptcy Retrieved November 15, 2010
  2. ^ [1] Discount retailer Loehmann's emerges from Chap. 11

External links