Loehmann's, the Bronx-based discount retailer that has been around for nearly a century, has filed for the third time for bankruptcy protection and plans to shut down its business.
In a Chapter 11 filing in federal Bankruptcy Court in Manhattan, the chain said it will sell its assets — which include 39 stores in 11 states and Washington, D.C. — at a Dec. 30 auction.
A collective that includes SB Capital Group, Tiger Capital Group and A&G Realty Partners has agreed to put in the first bid, which includes $19 million in cash.
Loehmann's, known for its Back Room of deep discounts on designer fashions, joins a list of low-price apparel retailers including Filene's Basement that have folded. The company, which has 1,600 employees, said its assets are worth between $50 million and $100 million.