US: Esopus acquires fashion retailer Loehmann's
Loehmann's filed for Chapter 11 bankruptcy protection for a third time in December
Private equity fund Esopus Creek Value Series Fund and a joint-venture comprising SB Capital Group, Tiger Capital Group and A&G Realty Partners, have closed on their acquisition of Loehmann's Holdings.
The deal will include the entire portfolio of registered trademarks and intellectual property of Loehmann's Holdings.
The acquisition was approved by Judge Martin Glenn of the US Bankruptcy Court for the Southern District of New York in Manhattan last week. It followed an auction of the company and its assets on 3 and 4 January.
Financial details of the deal were not disclosed.
Loehmann's filed for Chapter 11 bankruptcy protection for a third time in December. The filing revealed the company had between US$50m and $100m in assets, and $100m and $500m in liabilities.
Andrew Sole and Lauren Krueger, the managing members of Esopus, said of the deal: "Loehmann's is an iconic brand that has served the fashion needs of generations of women and their families for nearly 100 years.
"We are very excited to own Loehmann's valuable portfolio of brands, e-commerce websites, and its customer list. Over the next several months we will evaluate different opportunities and partnerships for the Loehmann's portfolio, some of which have already presented themselves."
Loehmann's first filed for bankruptcy protection in May 1999. It filed for Chapter 11 again in November 2010 and emerged four months later having successfully completed restructuring of the business.
The retailer was founded in 1921 in Brooklyn, New York, and operates around 40 stores across 11 US states and Washington DC.
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