While the existing Loehmann’s web site is operational and has been since 2014, a new partnership with technology platform provider Onestop will refresh the site and bring with it new and curated brand offerings.
Onestop’s president and chief executive officer Michael Wang said, “We’ve had a great kick off to the Loehmann’s partnership and we’re on track to launch their new web store in early 2017.” Sources familiar with the plan said the revamped site is likely to be completed late January. Onestop, backed by venture capital firms Bessemer Venture Partners and Fung Capital USA, typically gets a percentage of sales from the site. Onestop’s services include planning, buying, merchandising and allocation services. The company works with nearly 40 brands that include: Joe’s Jeans, Juicy Couture, AG Jeans, Seven For All Mankind and Jones New York. According to Wang: “There’s certainly strategic value in our Loehmann’s relationship for our existing brands. Onestop’s ecosystem of brands and technology is a large part of Onestop’s value proposition, so we will be facilitating distribution agreements wherever there’s a fit.”
The retail chain known as Loehmann’s filed a Chapter 11 petition for bankruptcy court protection in December 2013, and its intellectual property assets were acquired at an auction by Esopus Creek Value Series Fund LP, a hedge fund in January 2014. At the time, industry observers were wondering what the hedge fund would do with its new investment, expecting the owner to hold it for a short time and then flip the asset.
Andrew L. Sole, managing member of Esopus Creek Advisors LLC, the investment adviser to the Esopus fund, said at the time, “This is a longer-term investment for us. We’re looking to build the Loehmann’s brand over time. Esopus has a history of being a long-term investor in many of the purchases that we have made.”
Esopus instead resurrected the Loehmann’s name in May 2014 and had a soft launch for an e-tail-only business model. The site features brands across a variety of categories — men’s, women’s, children’s, footwear, apparel, beauty and home — at discounted prices, although not all are available at the same time. After the two years of operation, the latest partnership with Onestop indicates that the Loehmann’s name continues to garner interest from the vendor community and from consumers, particularly among Millennials, an industry source said.