|Headquarters||Bronx, New York|
|Key people||Steven Newman, CEO (2011-) |
|Products||Clothing, footwear, bedding, furniture, jewelry, beauty products, housewares|
|Owner(s)||Whippoorwill Associates, Inc.|
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.
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.
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, 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.
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.
- "Loehmann's Names Steven Newman Chief Executive Officer", PRNewswire, NEW YORK, June 7, 2011
- Young, Vicki M. (December 16, 2013). "Loehmann's Files Chapter 11". WWD. Retrieved 16 December 2013.
- Morris, Montrose. "Walkabout: Brooklyn Riches from Rags" Brownstoner (5/20/2010)
- Loehmann’s files for bankruptcy Retrieved November 15, 2010
- "Discount retailer Loehmann's emerges from Chap. 11" Business Week (March 1, 2011)
|This article needs additional citations for verification. (November 2010)|
- Pasquarelli, Adrianne, "Loehmann's defies the odds: Despite going bust twice, discount clothier avoids fate of Filene's, Daffy's", Crain's New York Business, June 23, 2013