The discounter of designer goods signed a deal to sell all its assets for $19 million to a consortium of firms known for their acumen in asset dispositions. The firms are Tiger Capital Group, A&G Realty Partners and SB Capital Group.
The cash-strapped Loehmann’s couldn’t wait until after the holiday season — the original plan — to file for Chapter 11 bankruptcy court protection. The voluntary petition in a Manhattan bankruptcy court was filed late Sunday. It represents the third time that the company has been in bankruptcy court proceedings.
The petition listed assets of between $50 million and $100 million and liabilities of between $100 million and $500 million. Among the top unsecured trade creditors listed and what they are owed include: Urban Outfitters Inc., New York, $351,633.57; Juicy Couture, Old Bridge, N.J., $252,909.19; Spanx Inc., Atlanta, $240,276.89; Adriano Goldschmied Inc., South Gate, Calif., $214,351.20, and Circa, New York, $191,997.97.
The retailer is owned and operated by hedge fund Whippoorwill Associates. Istithmar Retail Holdings owns a minority stake, having helped to finance its exit from bankruptcy in 2011. The discounter filed its second tour of bankruptcy court in 2010. Founded by Frieda Loehmann in 1921, the retailer had its first tour of bankruptcy proceedings in 1999, and exited the following year.
Loehmann’s currently operates 39 stores across 11 states. Its chief executive officer, Steven Newman, has left the company.
Michael Appel, Loehmann’s chairman, said, “During this period, it will be business as usual.... Both in our stores and online, we will continue to provide our customers with their favorite fashions at great prices.”
Geoffrey A. Richards, the head of the U.S. Special Situations and Restructuring Group at Canaccord Genuity Inc. and Loehmann’s financial adviser, said in a court document that the discounter had been marketed to potential buyers, and the agreement inked with the consortium as the “stalking horse” bidder is the best deal to date.
A bankruptcy court auction is set for Dec. 30 where other bidders can come in and make their offers for the entire company or for components of the business. If the split up of the assets is deemed to bring in the most value to the bankrupt estate, then the Loehmann’s nameplate could be the latest to enter the retail graveyard.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast