After almost 93 years, Loehmann’s, the upscale off-price specialty retailer that originated the concept, is going out of business. The local Loehmann’s store in The Lake Success Shopping Center at 1550 Union Turnpike New Hyde Park will be closing.
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 top designer names will be liquidated during the sale.
Loehmann’s began operating in 1921 when Frieda Loehmann opened the first store in Brooklyn. Loehmann made her rounds to designer’s showrooms, buying overstocks, cancellations and samples at a fraction of the original wholesale price.
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 Dec. 15, Loehmann’s filed for Chapter 11 bankruptcy protection for the third time in its history.