US fashion retailer Loehmann's Holdings said it has successfully completed its restructuring and emerged from Chapter 11 bankruptcy proceedings.

The company secured $45m in exit financing from Wells Fargo Bank and Whippoorwill Associates, as agent for its discretionary funds and accounts.

Loehmann's 'joint plan of reorganisation' was confirmed on 8 February and was effective as of yesterday (1 March), a statement said. As part of the plan, the company received a $25m capital infusion through a rights offering to its Class A Noteholders that was backstopped by Istithmar World and Whippoorwill Associates, it added.

The company said its restructuring eliminates all $110m of a long-term bond debt.

It 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.

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. Reiner will be the chairman of the board.

Loehmann's filed for Chapter 11 in November last year, before having its reorganisation plan approved by the courts in January this year.