InvestorCenter

Discount Retailer Loehmann's Files for Bankruptcy Protection

by Hugh Collins Nov 15th 2010 8:14AM
Updated Nov 15th 2010 8:18AM
Loehmann's Holdings Inc., filed for bankruptcy after failing to exchange $110 million of bonds, Bloomberg News reported.

"The decline in economic conditions in several markets in which Loehmann's stores are concentrated, mainly California, the Northeast, Midwest and Florida, has had an adverse effect on Loehmann's financial condition," CFO Joseph Melvin said in a filing with the U.S. Bankruptcy Court in Manhattan.

Loehmann's sells discounted clothes from brands including Calvin Klein and Donna Karan at more than 55 stores in the United States.

Last month, the company said it had failed to gain sufficient support a planned bond exchange, and that it would not make interest payments.

Istithmar World PJSC, the investment arm of state-owned holding company Dubai World, purchased Loehmann's in 2006. Bondholders and Istithmar agreed to the bankruptcy filing.

Crystal Financial LLC agreed to provide a $45 million loan to fund Loehmann's during bankruptcy.

The company has debt and assets both totaling more than $100 million.

Learn about investing from the comfort of your own home.

Portfolio Basics

Take the first steps to building your portfolio.

View Course »

Investment Strategies

Learn the strategies you need to build a winning portfolio

View Course »
View All Courses

Add a Comment

Sign in »
*0 / 3000 Character Maximum

38 Comments

Filter by:
tbbikerdad

There is a very SSIIMMPPLLEE SSOOLLUUTTIIOONN , to AMERICAN economy . WHY IS MY UNDERWEAR MADE IN VEITNAM , NOT AMERICA . Victoria's Secret is made in Malaysia . None of the clothes in my closet are made in AMERICA . Detroit is run by computer powered robots . Media says , Asian nations ARE NOT INTERESTED in trade agreement with AMERICA . ....ALL THE MORE REASON FOR CONSTITUTIONAL AMENDMENT TO OUTLAW CORPORATE BANKRUTpCIES , so AMERICA can GET BACK TO WORK . If a company files bankruptcy , C E O 's book keeper and the court system , should all GO TO JAIL .

November 16 2010 at 6:54 AM Report abuse rate up rate down Reply
tbbikerdad

The company C E O 's , book keeper AND THE COURT SYSTEM should ALL GO TO JAIL , ....P S . ....DO NOT BUY IN TO '' BLACK FRIDAY '' , day after THANKSGIVING . ... Biggest sales tax revenue income day of the year , for General Accounting Office , in Washington , D C . Black Friday Sales are already being advertised on cable and radio . Government depending on all us sheep to spend all our cash and credit for Christmas ..DO NOT BUY INTO THIS .................

November 16 2010 at 6:46 AM Report abuse rate up rate down Reply
fdjhhgjgfdjhhgj

http://www.stefsclothes.net Air jordan(1-24)shoes $33 BOOT $50 Nike shox(R4,NZ,OZ,TL1,TL2,TL3) $35 Handbags(Coach lv fendi d&g) $35 Tshirts (Polo ,ed hardy,lacoste) $16 Jean(True Religion,ed hardy,coogi) $30 Sunglasses(Oakey,coach,gucci,Armaini) $16 New era cap $15 Bikini (Ed hardy,polo) $25 FREE sHIPPING http://www.stefsclothes.net ...... , . - . - , _ , ......... ......... ) ` - . .> ' `( ....... ........ / . . . .`\ . . \ ........ ........ |. . . . . |. . .| ........ ......... \ . . . ./ . ./ .......... ........... `=)\ /.=` .......... ............. `-;`.-' ............. ............... `)| ... , ......... ................ || _.-'| ......... ............. ,_|| \_,/ .......... ....... , ..... \|| .' ............. ....... |\ |\ ,. ||/ .............. .... ,..\` | /|.,|Y\, ............ ..... '-...'-._..\||/ ............. ......... >_.-`Y| ............... 2@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@2@

November 16 2010 at 5:34 AM Report abuse rate up rate down Reply
lilstang289

what happened to the summer of recovery?

November 16 2010 at 2:11 AM Report abuse +1 rate up rate down Reply
Iselin007

Stores are surving by paying low wages an sending their workers to public assistance at taxpayer expense a real Walmart experience!

November 15 2010 at 11:59 PM Report abuse +2 rate up rate down Reply
Iselin007

Riots and store looting will be heading your way next

November 15 2010 at 11:55 PM Report abuse +1 rate up rate down Reply
Bruce and Sue

Never heard of them. No joke.

November 15 2010 at 11:54 PM Report abuse +2 rate up rate down Reply
1 reply to Bruce and Sue's comment
Ron

Hi, they are an upper end retail store. I had never heard of them either,until my niece got the job of store manager at the store in Denver. She came out here to L.A. to set up a store in Orange County. Guess that didn't go well. By the way, she couldn't afford to shop in her own store!

November 16 2010 at 1:10 AM Report abuse rate up rate down Reply
Iselin007

The oracle of Omaha sold all his HomeDepot stock giving the sign Homes are in a down spiral due to job losses and low wages.

November 15 2010 at 11:53 PM Report abuse +2 rate up rate down Reply
Iselin007

Walmart can't carry all those stores they have in the US they'll be following behind them at some point because over expansion is dragging them down in this Great Depression.

November 15 2010 at 11:46 PM Report abuse +2 rate up rate down Reply
Iselin007

The over saturated retail sector starting to line up for bankruptsy as they should have in an economic down turn as bad as this Great Depression.

November 15 2010 at 11:43 PM Report abuse +1 rate up rate down Reply