NEW YORK, Jan. 8, 2014 /PRNewswire/ -- After almost 93 years, Loehmann's, the premier upscale off-price specialty retailer that originated the concept, is going out of business.
Yesterday, 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 tomorrow, January 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.
Loehmann's stores feature men's and women's designer apparel, shoes and accessories from such brands as Calvin Klein, Theory, Michael Kors, Max Studio, Tahari and Vince, with prices typically 30% to 65% lower than traditional retail. The "Going Out of Business" sales will offer discounts off these already low prices, with as much as 40% off the lowest, ticketed price on everything, including markdowns and clearance.
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. For a list of locations, go to: http://www.loehmanns.com/locationEventMapping.aspx. All stores will maintain their normal business hours during this special sale. Cash and major credit cards will be accepted.
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.
About Tiger Group
Tiger Group provides asset valuation, advisory and disposition services to a broad range of retail, wholesale, and industrial clients. With over 40 years of experience and significant financial backing, Tiger offers a uniquely nimble combination of expertise, innovation and financial resources to drive results. Tiger's seasoned professionals help clients identify the underlying value of assets, monitor asset risk factors and, when needed, provide capital or convert assets to capital quickly and decisively. Tiger's collaborative, straight-forward approach is the foundation for its many long-term 'partner' relationships and decades of success. Tiger operates main offices in Boston, Los Angeles and New York. To learn more about Tiger, please visit www.TigerGroup.com.
About SB Capital Group, LLC
SB Capital Group, a Schottenstein affiliate, is a leader in the field of asset recovery, rescue finance, restructuring and strategic store closing events. As equity stakeholders in businesses comprising sectors as diversified as retail enterprises, consumer products, franchising, licensing and real property, SB Capital Group leverages resources and depth of experience to provide services with applicability across a wide spectrum of industries. Recognized worldwide as a trusted partner for businesses and professionals, SB Capital Group adds value to high level strategic planning as well as day-to-day operations. Our participation in transactions that span the globe has solidified our reputation as one of the most creative and innovative financial service and asset realization firms in existence today. To learn more, please visit www.sbcapitalgroup.com.
About A & G Realty Partners
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. Services include: Real estate strategy, lease dispositions, lease renegotiations, optimization of retail property portfolios, valuations and acquisitions. Our goal is to deliver innovative solutions that generate the highest possible value or savings for our clients' real estate portfolio. For additional information, please visit www.agrealtypartners.com.
SOURCE SB Capital Group, LLC; Tiger Capital Group, LLC; A & G Realty Partners