Discount Retailer Loehmann's Files for Bankruptcy Protection

Before you go, we thought you'd like these...
Before you go close icon
Loehmann's Holdings Inc., filed for bankruptcy after failing to exchange $110 million of bonds, Bloomberg News reported.

"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.

Sponsored Links
Last month, the company said it had failed to gain sufficient support a planned bond exchange, and that it would not make interest payments.

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.
Read Full Story
Credit Card Compare

Credit Card Compare

Whether you're looking for great travel rewards or low annual fees, find the card that's right for you.

Compare Now

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

12 Facts That Will Make You Smarter Than Your Friends 12 Facts That Will Make You Smarter Than Your Friends
Man Is Horrified To Learn His Biological Father's Identity - But A Look In The Mirror Man Is Horrified To Learn His Biological Father's Identity - But A Look In The Mirror
Nature Gets Revenge On Safari Hunter Who Killed Elephants And Lions For Sport Nature Gets Revenge On Safari Hunter Who Killed Elephants And Lions For Sport