Discount retailer Loehmann's has gone for chapter 11 bankruptcy for the third time, and anticipates ceasing the company.
The company will also auction off its entities Dec. 30 The Los Angeles Times reported Tuesday. There are 39 stores in 11 states and Washington, D.C, which range from $50 million to $100 million.
"(Loemann's was) late in introducing the e-commerce channel relative to its peers in the off-price retail sector," William Thayer, chief operating officer at Loehmann's told The Times. "The decline in economic conditions" in Loehmann's markets such as California, New York, Florida and the Midwest have had an adverse effect." The retailer publicized its website towards the end of 2011 following no more than six months of creating it. (There was) increased competition in the off-price retail channel, limited access to capital and a number of strategic, financial and operating decisions." Customers can still buy merchandise from the retailer while it goes through its course.
SB Capital Group, Tiger Captial Group, and A&G Realty Partners is expected to be the first bidder for a predicted $19 million.
Loehmann's initially went into bankruptcy in 1999 while also shuttering 25 locations. The retailer's second time came in 2010 when nine more locations closed.
Loehmann's was established in 1921, and currently has over 500 designer brands like Calvin Klein, and Dolce Gabbana. Women between the ages of 18 and 54 from homes with incomes greater than $75,000 are most-known to shop at its stores.
Loehmann's has discounts for clothing made by well-known designers, and 1,600 total employees.
Other discount retailer's in Filene's Basement, and Syms Corp. also went the bankruptcy route, in Nov. 2011 ABC News reported. This saw 25 Syms stores, and 21 Filene's locations end operations in Jan. 2012 following litigation.
It was the third bankruptcy for Filene's as well. Syms bought the company in an auction.
