Loehmann's
| File:Loehmanns logo.png | |
| Company type | Private |
|---|---|
| Industry | Retail |
| Founded | 1921 |
| Founder | Template:Plain list |
| Defunct | 2014 (physical stores) 2018 (e-commerce) |
| Fate | Liquidation, followed by online relaunch and later pop-up physical presence |
| Headquarters | |
| Parent | Century 21 |
| Website | shoploehmanns |
Loehmann's is a U.S.-based department store chain founded in 1921 in New York City. It expanded into an off-price retailer with multiple locations nationwide.
The brand gained recognition for its "Back Room," which offered discounted designer merchandise. After shuttering all brick-and-mortar outlets in 2014, Loehmann's transitioned to an online-only format before ceasing operations entirely in 2018.[1] [2] Cite error: The opening <ref> tag is malformed or has a bad name In 2020, the company was acquired by Century 21, with plans to relaunch physical pop-up stores in 2026.
History and operations
Loehmann's began in 1921 when former department store buyer Frieda Loehmann and her son Charles opened their inaugural location. This first store occupied a former car showroom at the northwest corner of Bedford Avenue and Sterling Place in Brooklyn, New York City.
Their business model focused on acquiring excess seasonal inventory from prominent New York designers and offering these items at reduced prices.
While Frieda was hesitant to expand beyond the initial store, her son launched a second Loehmann's outlet on Fordham Road in the Bronx in 1930, employing the same discount strategy. Frieda maintained management of the original Brooklyn store, purchasing the property and residing above it.[3]
Following Frieda’s passing in 1962, the Bedford Avenue location was closed,[3] and the company under Charles C. Loehmann went public, initiating broader expansion efforts.
In 1983, Loehmann's was acquired by Associated Dry Goods. Subsequent corporate changes included Associated Dry Goods merging with The May Department Stores Company in 1986. By 1988, May Department Stores sold the chain, which then comprised 77 stores, to an investment group led by Spanish firm Sefinco Ltd. and the Sprout Group, affiliated with Donaldson, Lufkin & Jenrette.
The retailer resumed public trading status in May 1996.
At its height around 1999, Loehmann's operated roughly 100 locations across 17 states.Cite error: The opening <ref> tag is malformed or has a bad name
Multiple bankruptcies
Loehmann's first filed for Chapter 11 bankruptcy protection in May 1999. The company successfully exited bankruptcy on September 6, 2000. In 2004, private investment firm Arcapita (previously Crescent Capital), which adheres to Islamic Banking principles, acquired Loehmann's for $177 million (~$Template:Format price adjusted for Template:Inflation/year). Two years later, in May 2006, Arcapita sold the retailer to Dubai-based private equity firm Istithmar for $300 million (~$Template:Format price in Template:Inflation/year).
On November 15, 2010, after unsuccessful negotiations to extend its debt with creditors, Loehmann's once again sought Chapter 11 bankruptcy protection and announced the closure of eight outlets.
By late February 2011, the company had emerged from bankruptcy. Loehmann's, headquartered in New York, reported securing $45 million in new financing while restructuring efforts eliminated $110 million in long-term bond obligations, reduced interest expenses by $14 million, and achieved $23 million in additional cost savings.
Loehmann's filed for Chapter 11 bankruptcy a third time on December 16, 2013, listing assets valued at $100 million against liabilities totaling $500 million. During this bankruptcy process, Esopus Creek Value Series Fund LP acquired the company's intellectual property and customer databases starting in March 2014. Meanwhile, Tiger Capital Group, A&G Realty Partners, and SB Capital Group purchased inventory, fixtures, accounts receivable, and cash assets.
Following the expiration of Loehmann's Manhattan lease in 2017, Barneys New York established its downtown location at the former Loehmann's site on Seventh Avenue and 16th Street in Chelsea. This location holds historical significance as the original site where Barney Pressman launched his discount men's clothing business in 1923.
Beginning January 8, 2014, Loehmann's initiated its final liquidation sale across all stores. The retailer progressively closed locations while consolidating remaining merchandise into fewer stores throughout the liquidation period until all inventory was sold off by the appointed liquidator. The last physical store shuttered on February 26, 2014; from that point forward, Loehmann’s operated exclusively as an online retailer.
Return
In 2025, the New York Post announced that Century 21 had acquired Loehmann's, initiating pop-up outlets featuring off-price merchandise initially in Deer Park, followed by locations in Florida and New York City.
References
Notes
Further reading
- Pasquarelli, Adrianne, "Loehmann's defies the odds: Despite going bust twice, discount clothier avoids fate of Filene's, Daffy's", Crain's New York Business, June 23, 2013
- "The Meaning of Loehmann's, RIP", Marlene Adler Marks, Jewish World Review, June 8, 1999
- "Loehmann's New Owner Keeps the Faith", Barney Gimbel, Fortune, February 7, 2005
External links
- Pages with reference errors
- Articles with short description
- Pages with broken file links
- Defunct department stores based in New York City
- Discount stores of the United States
- Companies based in the Bronx
- American companies established in 1921
- Retail companies established in 1921
- Retail companies disestablished in 2014
- 1921 establishments in New York City
- 2014 disestablishments in New York City
- Companies that filed for Chapter 11 bankruptcy in 1999
- Companies that filed for Chapter 11 bankruptcy in 2010
- Companies that filed for Chapter 11 bankruptcy in 2013
- Privately held companies based in New York City
- Re-established companies