Home / Knowledge / News / Apparel/Garments / Loehmann's emerges from Chapter 11 Protection
Loehmann's emerges from Chapter 11 Protection
Mar '11
Loehmann's Holdings Inc and its affiliates announced that it has successfully completed its restructuring and has emerged from Chapter 11 bankruptcy proceedings. The Company secured $45 million in exit financing from Wells Fargo Bank, N.A. and Whippoorwill Associates, Inc., as agent for its discretionary funds and accounts.

The Company's Joint Plan of Reorganization was confirmed on February 8th and becomes effective on March 1st. As part of the Plan, the Company received a $25 million capital infusion through a rights offering to its Class A Noteholders that was backstopped by Istithmar World and Whippoorwill Associates, Inc. The restructuring eliminates all $110 million of the Company's long-term bond debt, $14 million in related annual interest, $23 million in other cost reductions, and recapitalizes the balance sheet through the exchange of notes for common stock.

The Company also announced that Loehmann's CEO Jerald Politzer, who guided the company through this successful bankruptcy process, has chosen to leave the Company. Joe Melvin, the Company's COO and CFO will assume the role of interim CEO.

"As was our goal, we have significantly reduced our debt through the Chapter 11 process and have emerged a stronger, more financially secure company better positioned to address the opportunities and challenges of the marketplace," said Joe Melvin, interim CEO of Loehmann's. "We look forward to rededicating ourselves to building Loehmann's into an even more exciting shopping destination for our existing customers and tapping into a whole new customer base who appreciates the value and brands we bring to them."

Commenting on the exit financing, Jim Dore, Group Head and Executive Vice President, Wells Fargo Capital Finance – Retail Finance Division, said, "We appreciate the opportunity to provide Loehmann's with a flexible financing solution and look forward to building our new partnership."

Moving forward, the Company will focus merchandising efforts on well-known designer brands that resonate with its frequent shoppers. The Company will also refine its advertising outreach to communicate with Loehmann's core customers and potential new shoppers. Emphasis will also be placed on further building on Loehmann's successful membership program which currently has a database of over 1.5 million Insider Members.

In addition, as part of the restructuring, Arthur E. Reiner and Nancy Ross have been appointed as independent members of the Board of Directors. They will join directors Dr. Shuja Ali and Kapil Zaveri of Istithmar World, and Steven Gendal and Michael Lee of Whippoorwill Associates, Inc. Mr. Reiner will be the Chairman of the Board.

Mr. Reiner was Chairman and Chief Executive Officer of Macy's East. He was also Chairman and Chief Executive of Finlay Enterprises, a nation-wide fine jewelry company. In May 2003, Mr. Reiner became a director of New York & Company, Inc. and is currently Chairman of the Compensation Committee, and a member of the Corporate Nomination & Governance and Audit Committees.

Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Amrit Sethia

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search