Loehmann’s, the grandmother of designer sale merchandise that filed for Chapter 11 bankruptcy in November, announced this morning that thanks to some new deals they will be able to exit bankruptcy by February 18, 2011. No mention in the release was made of closing stores, but efforts have been made to assure the world the chain will stick around. The store now has a line of $33 million revolving credit and an additional $7 million that will be made immediately available. When they get out of Chapter 11, they’ll receive another $25 million. That $7 million will be used to buy spring stock.
Loehmann’s has to use these new funds to fix the business so that it doesn’t find itself in this dark place of bankruptcy again. One of these “strategic business initiatives” includes “highlighting the Back Room,” which is the section that houses the high-end designer goods. This seems pretty obvious, since sometimes they have great past-season Marc Jacobs or Dolce & Gabbana, for example, which is then impossible to find at the 18th Street Loehmann’s. Another plan is to reallocate “marketing funds to reach new and additional customers.” So find more customers and make sure they know the store stocks cut-rate high-fashion loot. They’re catching on.