Monday 15 November 2010

Loehmann's Holdings Files for Bankruptcy in New York - Bloomberg

Loehmann’s Holdings Inc., the Bronx, New York-based seller of discounted designer goods, filed for Chapter 11 bankruptcy after it failed to exchange $110 million of senior notes.

“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,” Joseph Melvin, the company’s chief financial officer, said in a filing today with the U.S. Bankruptcy Court in Manhattan.

Loehmann’s, founded in 1921 by Frieda Loehmann, sells clothes from brands such as Michael Kors, Calvin Klein and Donna Karan at more than 55 U.S. stores, according to its website. The company last month said that an offer it made to exchange the notes didn’t get enough support and that it wouldn’t make an interest payment on the securities.

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