Loehmann's

File:New Life Tabernacle 1476 Bedford Avenue Crown Heights.jpg's original store was located in this building at 1476 Bedford Avenue in the Crown Heights neighborhood of Brooklyn, New York City. It is now a gospel church.]]

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. Frieda 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.Morris, Montrose. [http://www.brownstoner.com/blog/2010/05/walkabout-brook-5/ "Walkabout: Brooklyn Riches from Rags"] {{webarchive |url=https://web.archive.org/web/20160304030704/http://www.brownstoner.com/blog/2010/05/walkabout-brook-5/ |date=March 4, 2016 }} Brownstoner (5/20/2010)

Soon after her death in 1962, the Bedford Avenue store was closed, and the Charles C. Loehmann company went public and began to expand to a wider area.

Loehmann's was acquired by Associated Dry Goods in 1983. In 1986, The May Department Stores Company merged with Associated Dry Goods. Two years later, May Department Stores Company 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.

At its peak in 1999, the company had approximately 100 stores in 17 states.{{cite web|last=Dribben|first=Melissa|title=Low-cost fashion stalwart's last sale|url=http://articles.philly.com/2008-04-28/business/25251413_1_frieda-loehmann-shop-department-store-buyer|archive-url=https://web.archive.org/web/20140110092034/http://articles.philly.com/2008-04-28/business/25251413_1_frieda-loehmann-shop-department-store-buyer|url-status=dead|archive-date=January 10, 2014|work=The Philadelphia Inquirer|accessdate=10 January 2014|date=28 April 2008}}{{clear left}}

In May 1999, Loehmann's declared Chapter 11 bankruptcy. It emerged from bankruptcy protection on September 6, 2000. In 2004, it was acquired for $177 million (~${{Format price|{{Inflation|index=US-GDP|value=177000000|start_year=2004}}}} in {{Inflation/year|US-GDP}}) by Arcapita (formerly Crescent Capital), a private investment firm complying with Islamic Banking law. In May 2006, Arcapita sold Loehmann's for $300 million (~${{Format price|{{Inflation|index=US-GDP|value=300000000|start_year=2006}}}} in {{Inflation/year|US-GDP}}) to Istithmar, a private equity firm based in Dubai.

On November 15, 2010, Loehmann's filed for Chapter 11 again, after failing to reach a debt extension with its creditors. It then announced the closing of eight stores.[https://archive.today/20120716071407/http://retail.ocregister.com/2010/11/15/loehmanns-files-for-bankruptcy-protection-closes-o-c-store/39102/ Loehmann’s files for bankruptcy] Retrieved November 15, 2010

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.[http://www.businessweek.com/ap/financialnews/D9LMPHH80.htm "Discount retailer Loehmann's emerges from Chap. 11"] {{webarchive |url=https://web.archive.org/web/20120113143428/http://www.businessweek.com/ap/financialnews/D9LMPHH80.htm |date=January 13, 2012 }} Business Week (March 1, 2011)

On December 16, 2013, Loehmann's filed for Chapter 11 bankruptcy for the third time, listing assets at $100 million, with debt at $500 million.{{cite web|title=Lehmann's Chapter 11 Voluntary Petition|url=https://www.pacermonitor.com/view/ZH2HTYI/Loehmann's_Holdings,_Inc.__nysbke-10-16077__0001.0.pdf|website=PacerMonitor|accessdate=16 May 2016}}{{cite news| url=https://www.bloomberg.com/news/2013-12-16/loehmann-s-designer-discounter-files-for-bankruptcy.html | work=Bloomberg | first=Dawn | last=McCarty | title=Loehmann's Designer Discounter Files for Bankruptcy | date=December 16, 2013}} During bankruptcy, Esopus Creek Value Series Fund LP purchased Loehmann’s intellectual property assets and customer lists starting in March 2014 and Tiger Capital Group, A&G Realty Partners, and SB Capital Group purchased the inventory, furniture and fixtures, accounts receivable, and cash component.{{cite web | url=http://www.wwd.com/fashion-news/fashion-scoops/esopus-gets-ok-on-loehmanns-ip-7339461?src=nl/mornReport/20140108 | title=Esopus Gets OK on Loehmann's IP | publisher=WWD | date=8 January 2014 | accessdate=8 January 2014}} In 2017, after Loehmann's Manhattan lease expired, Barneys New York opened its downtown store at the Loehmann’s site at Seventh Avenue and 16th Street in Chelsea. It is the same building where Barney Pressman started his discount men’s business in 1923. Loehmann's began its final going-out-of-business sale at all stores on January 8, 2014, and continued to close its stores, and consolidate its remaining merchandise at its remaining stores during the liquidation process until the remaining stock had been cleared by the liquidator. Loehmann's closed its last store on February 26, 2014, and moved into online-only retailing from that date.{{cite web|url=http://www.ajc.com/news/business/retailer-loehmanns-going-out-of-business/ncgKF/ |title=Archived copy |accessdate=2014-01-08 |url-status=live |archiveurl=https://web.archive.org/web/20160304044709/http://www.ajc.com/news/business/retailer-loehmanns-going-out-of-business/ncgKF/ |archivedate=2016-03-04 }}{{cite news|url=https://www.washingtonpost.com/business/loehmanns-to-begin-liquidation/2014/01/08/28d13dc2-7894-11e3-a647-a19deaf575b3_story.html |archive-url=https://archive.today/20140108230749/http://www.washingtonpost.com/business/loehmanns-to-begin-liquidation/2014/01/08/28d13dc2-7894-11e3-a647-a19deaf575b3_story.html |title= Loehmann's liquidation sales begin Thursday |archive-date=2014-01-08 |url-status=dead }}

• List of defunct department stores of the United States

Notes

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Further reading

• Pasquarelli, Adrianne, [https://web.archive.org/web/20170329125422/http://www.crainsnewyork.com/article/20130623/RETAIL_APPAREL/306239975 "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

• [https://web.archive.org/web/20120309034453/http://www.loehmanns.com/ Loehmann's website]
• [https://web.archive.org/web/20111113081211/http://blog.loehmanns.com/ Loehmann's official fashion blog]
• [https://web.archive.org/web/20160304113649/http://www.jewishworldreview.com/Marlene/marks060899.asp "The Meaning of Loehmann's, RIP"], Marlene Adler Marks, Jewish World Review, June 8, 1999
• [https://web.archive.org/web/20121015015451/http://money.cnn.com/magazines/fortune/fortune_archive/2005/02/07/8250442/index.htm "Loehmann's New Owner Keeps the Faith"], Barney Gimbel, Fortune, February 7, 2005

Category:Defunct department stores based in New York City

Category:Discount stores of the United States

Category:Companies based in the Bronx

Category:Defunct companies based in New York City

Category:American companies established in 1921

Category:Retail companies established in 1921

Category:Retail companies disestablished in 2014

Category:1921 establishments in New York City

Category:2014 disestablishments in New York City

Category:Companies that filed for Chapter 11 bankruptcy in 1999

Category:Companies that filed for Chapter 11 bankruptcy in 2010

Category:Companies that filed for Chapter 11 bankruptcy in 2013

Category:Privately held companies based in New York City