New York -- Discount apparel retailer Loehmann’s has filed for bankruptcy protection for a third time in its 92-year history, and said it will sell off its assets to a group of liquidators.
According to a report by Reuters, Loehmann’s filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court in Manhattan on Sunday, after attempts to sell itself last month failed.
The filing revealed that the chain will seek to sell its assets at auction on Dec. 30.
A&G Realty Partners, SB Capital Group and Tiger Capital Group agreed to make an initial bid that includes $19 million in cash and other sums, according to a court filing.
Loehmann's chairman Michael Appel said in a statement that "increased competition in the off-price retail channel, coupled with limited access to capital, has severely impacted the company's financial position." He also said that CEO Steven Newman has left the company.