Loehmann's
Encyclopedia
Loehmann's is a chain of off-price department stores in the United States.
Loehmann's is best known for its "Back Room," where women interested in fashion can find designer clothes at prices lower than in department or specialty stores. In recent years, Loehmann's has expanded its offerings to include shoes, accessories, and men's products.
and began to expand to a wider area.
Loehmann's was acquired by Associated Dry Goods
in 1983. In 1986, May Department Stores
merged with Associated Dry Goods. Two years later, the new May Department Stores Co. 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.
In May 1999, Loehmann's declared Chapter 11 bankruptcy. It emerged from bankruptcy protection on September 6, 2000.
In 2004, Loehmann's was acquired for $177 million by Arcapita
(formerly Crescent Capital), a private investment firm complying with Islam
ic Banking law.
In May 2006, Arcapita sold Loehmann's for $300 million to Istithmar
, a private equity
firm based in Dubai
. The chain now has stores in 12 U.S. state
s.
On November 15, 2010, Loehmann's filed for Chapter 11 again after failing to reach a debt extension with its creditors. It also announced the closing of at least eight stores.
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.
Loehmann's is best known for its "Back Room," where women interested in fashion can find designer clothes at prices lower than in department or specialty stores. In recent years, Loehmann's has expanded its offerings to include shoes, accessories, and men's products.
History
In 1921, Frieda Loehmann, a former department store buyer, opened her first 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. Loehmann refused to expand her stores beyond Brooklyn and the Bronx. Soon after her death in 1962, the company went publicInitial public offering
An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
and began to expand to a wider area.
Loehmann's was acquired by Associated Dry Goods
Associated Dry Goods
Associated Dry Goods was a chain of department stores that merged with May Department Stores in 1986. It was founded in 1916 as an association of independent stores called American Dry Goods, based in New York City.-History:...
in 1983. In 1986, May Department Stores
May Department Stores
The May Department Stores Company was a national department store chain in the United States, founded in 1877 by David May. The company ceased to exist in 2005 when it was merged with Federated Department Stores, Inc . Prior to the merger it was headquartered in Downtown St. Louis, Missouri...
merged with Associated Dry Goods. Two years later, the new May Department Stores Co. 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
Donaldson, Lufkin & Jenrette
Donaldson, Lufkin & Jenrette or DLJ is a defunct U.S. investment bank founded by William H. Donaldson, Richard Jenrette and Dan Lufkin in 1959. Its businesses included securities underwriting; sales and trading; investment and merchant banking; financial advisory services; investment research;...
.
The company was taken public
Public company
This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...
again in May 1996.
In May 1999, Loehmann's declared Chapter 11 bankruptcy. It emerged from bankruptcy protection on September 6, 2000.
In 2004, Loehmann's was acquired for $177 million by Arcapita
Arcapita
Arcapita Inc. is a Delaware-incorporated holding and real estate company, headquartered in Atlanta, Georgia....
(formerly Crescent Capital), a private investment firm complying with Islam
Islam
Islam . The most common are and . : Arabic pronunciation varies regionally. The first vowel ranges from ~~. The second vowel ranges from ~~~...
ic Banking law.
In May 2006, Arcapita sold Loehmann's for $300 million to Istithmar
Istithmar World
Istithmar World is an investment firm based in Dubai, United Arab Emirates . This company is a state-run business owned by Dubai World, a Dubai government-owned company, and was established in 2003...
, a private equity
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm based in Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
. The chain now has stores in 12 U.S. state
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
s.
On November 15, 2010, Loehmann's filed for Chapter 11 again after failing to reach a debt extension with its creditors. It also announced the closing of at least eight stores.
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.
Competitors
- Burlington Coat FactoryBurlington Coat FactoryBurlington Coat Factory Warehouse Corporation is a national department store retailer focusing on clothing and shoes, with over 450 stores in 45 states and Puerto Rico.. In 2006, it was acquired by Bain Capital, LLC in a take-private transaction...
- T.J. MaxxT.J. MaxxT.J. Maxx, sometimes referred to as TJ's or the Maxx, is an American department store chain owned by TJX Companies. With more than 900 stores T.J. Maxx is a major clothes retailer in the United States, whilst also operating stores in a number of other countries.-History:In 1976, T.J...
- MarshallsMarshallsMarshalls, Inc., is a chain of American department stores owned by TJX Companies. Marshalls has over 750 conventional stores, as well as larger stores named Marshalls Mega Store, covering 42 states and Puerto Rico. Marshalls expanded into Canada in March 2011...
- Filene's BasementFilene's BasementFilene's Basement, also called The Basement, is a Massachusetts-based chain of department stores which was owned by Retail Ventures, Inc. until April 2009 when it was sold to Syms....
- Century 21Century 21 (department store)Century 21 is a chain of department stores in the northeastern United States. There are stores located in Long Island/Westbury , Brooklyn , Morristown , and Paramus , but the largest location is in Lower Manhattan, across the street from the World Trade Center site...
- Daffy's
External links
- Loehmann's website
- Loehmann's official fashion blog
- "The Meaning of Loehmann's, RIP", Marlene Adler Marks, Jewish World ReviewJewish World ReviewJewish World Review is a free, online magazine updated Monday through Friday , which seeks to appeal to "people of faith and those interested in learning more about contemporary Judaism from Jews who take their religion seriously."It carries informational articles related to Judaism, dozens of...
, June 8, 1999 - "Loehmann's New Owner Keeps the Faith", Barney Gimbel, FortuneFortune (magazine)Fortune is a global business magazine published by Time Inc. Founded by Henry Luce in 1930, the publishing business, consisting of Time, Life, Fortune, and Sports Illustrated, grew to become Time Warner. In turn, AOL grew as it acquired Time Warner in 2000 when Time Warner was the world's largest...
, February 7, 2005