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.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
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@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“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