Discount retailer Loehmann’s files for bankruptcy
DUBAI, United Arab Emirates - U.S. discount retailer Loehmann's is filing for Chapter 11 bankruptcy after its Dubai government-linked owner failed to reach a debt-extension deal with creditors.
DUBAI, United Arab Emirates - U.S. discount retailer Loehmann's is filing for Chapter 11 bankruptcy after its Dubai government-linked owner failed to reach a debt-extension deal with creditors.
Loehmann's says the Chapter 11 filing Monday in the U.S. Bankruptcy Court for the Southern District of New York is "pre-negotiated," meaning it could play out faster than a traditional bankruptcy filing.
Dubai's Istithmar World investment unit bought New York-based Loehmann's for $300 million in 2006. The 89-year-old retailer sells designer brands at discount prices in 15 states and the District of Columbia.
Istithmar is a subsidiary of troubled state conglomerate Dubai World.
Istithmar's CEO Andy Watson says the company hopes to achieve a "consensual restructuring."
The chain has one store in the Philadelphia region, in Moorestown. A company spokeswoman said that the Loehmann's in Drexel Hill was one of eight underperforming stores that closed last week.
























