LOS ANGELES (AP/CBSLA.com) — Loehmann’s, a discount retailer which traces its roots back more than 90 years, says it will begin liquidating inventory Thursday.
The New York-based retailer tried unsuccessfully to sell its business in November and filed for bankruptcy protection in December, citing limited access to capital and increased competition in the off-price retail niche. It was the company’s third bankruptcy filing.READ MORE: Crews Working To Contain Casitas Fire Burning Near Ojai; Evacuations Ordered For Some Residents
Loehmann’s said Wednesday that a U.S. bankruptcy court has approved plans for a group of outside firms to conduct “Going Out of Business” sales at each of its 39 stores in 11 states. The sales will include the liquidation of more than $65 million of inventory, according to the company.
Frieda Loehmann opened the retailer’s original store in Brooklyn in 1921. It is known for its “Back Room,” where bargain shoppers search for designer clothes on the cheap.READ MORE: LA County Business Owners Anticipate COVID Restrictions Lifting Tuesday
Its demise follows the bankruptcy and subsequent liquidation of Filene’s Basement in 2011 and the 2012 decision to close Daffy’s Inc. — two other East Coast discount retailers.
Loehmann’s said weak economic conditions in several key markets nationwide hurt its performance, along with intense competition in stores and online.
There are six Loehmann’s located in the Los Angeles and Orange county areas including Reseda, Beverly Hills, Long Beach, Costa Mesa, Irvine and Laguna Niguel.MORE NEWS: Luxury Vacations Are State's Latest COVID Vaccine Incentives
(TM and © Copyright 2014 CBS Local Media, a division of CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2011 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)