After almost 93 years, Loehmann’s, the premier upscale off-price specialty retailer that originated the concept, is going out of business.
Earlier this week, the U.S. Bankruptcy Court in Manhattan approved an order authorizing a joint venture formed by SB Capital Group, LLC, Tiger Capital Group, LLC, and A & G Realty Partners, to conduct “Going Out of Business” sales in each of Loehmann’s 39 locations in 11 states and the District of Columbia. More than $65 million of current in-season inventory and new arrivals from many of the top designer names will be liquidated during the sale, which begins on Jan. 9.
Loehmann’s began operating in 1921 when Frieda Loehmann opened the first store in Brooklyn, N.Y. Loehmann made her rounds to designer’s showrooms, buying their overstocks, cancellations and samples at a fraction of the original wholesale price. A trendsetter at a time when women rarely assumed that role, Frieda Loehmann’s forward thinking and innovative approach to retail set the standard for what became an entire industry.
The “Back Room” was a Loehmann’s exclusive, featuring American and European designer selections from the best names in the business, all at bargain prices. The legendary Back Room was a favorite fashion destination for generations of stylish women.
More recently, declining economic conditions in the retailer’s key markets of California, New York, Florida and the Midwest adversely affected Loehmann’s operations. The company’s performance was also impacted by intense competition from other off-price and outlet retailers, as well as the e-commerce channel. In November, Loehmann’s tried to sell its business as a going concern, but was unable to secure meaningful bids. On December 15, 2013, Loehmann’s filed for Chapter 11 bankruptcy protection for the third time in its history.
Daniel Kane, managing partner of Tiger Group, said, “We invite the public to shop early to get the best deals on a wide range of current designer merchandise at liquidation prices. New inventory will be arriving daily from Loehmann’s distribution center, assuring shoppers an incredible selection.”
Scott Bernstein, COO of SB Capital Group, said, “There is no store quite like Loehmann’s. During its more than 90 years in business, the Loehmann’s name became synonymous with great quality and value. A sale of this nature in these stores will be historical. With millions of dollars of inventory from some of the greatest names in fashion for women and men, the savings, even for Loehmann’s traditional customers, will be unprecedented.”
Loehmann’s stores are located in Connecticut, New York, New Jersey, Maryland, Virginia, Georgia, Florida, Michigan, Illinois, Texas, California and the District of Columbia.
In addition to the liquidation of merchandise inventories, fixtures and equipment from all 39 stores as well as the company’s Rutherford, N.J. distribution center will be sold. Loehmann’s stores range from 15,000 to 60,000 square feet in size, and average 28,000 square feet.
Tiger Group provides asset valuation, advisory and disposition services to a broad range of retail, wholesale, and industrial clients.
SB Capital Group, a Schottenstein affiliate, is a leader in the field of asset recovery, rescue finance, restructuring and strategic store closing events.
With a combined 50 years of commercial real estate experience, the partners at A&G have represented over three hundred and fifty retailers, achieved hundreds of millions of dollars in rent savings for over 10,000 locations, terminated, subleased or sold over 6,000 leases and fee owned properties, and strategized and managed many of the high profile disposition and rent reduction projects in the country.