Wednesday, January 8, 2014
NEW YORK (AP) — Loehmann's, a discount retailer which traces its roots back more than 90 years, says it will begin liquidating inventory Thursday.
The New York-based retailer tried unsuccessfully to sell its business in November and filed for bankruptcy protection in December, citing limited access to capital and increased competition in the off-price retail niche. It was the company's third bankruptcy filing.
Loehmann's said Wednesday that a U.S. bankruptcy court has approved plans for a group of outside firms to conduct "Going Out of Business" sales at each of its 39 stores in 11 states. The sales will include the liquidation of more than $65 million of inventory, according to the company.
Frieda Loehmann opened the retailer's original store in Brooklyn in 1921. It is known for its "Back Room," where bargain shoppers search for designer clothes on the cheap.
Its demise follows the bankruptcy and subsequent liquidation of Filene's Basement in 2011 and the 2012 decision to close Daffy's Inc. — two other East Coast discount retailers.
Loehmann's said weak economic conditions in several key markets nationwide hurt its performance, along with intense competition in stores and online.