Discount Retailer Loehmann's Files for Bankruptcy Protection
"The decline in economic conditions in several markets in which Loehmann's stores are concentrated, mainly California, the Northeast, Midwest and Florida, has had an adverse effect on Loehmann's financial condition," CFO Joseph Melvin said in a filing with the U.S. Bankruptcy Court in Manhattan.
Loehmann's sells discounted clothes from brands including Calvin Klein and Donna Karan at more than 55 stores in the United States.
Istithmar World PJSC, the investment arm of state-owned holding company Dubai World, purchased Loehmann's in 2006. Bondholders and Istithmar agreed to the bankruptcy filing.
Crystal Financial LLC agreed to provide a $45 million loan to fund Loehmann's during bankruptcy.
The company has debt and assets both totaling more than $100 million.