Loehmann's
Loehmann's was an American off-price department-store chain known for selling discounted designer and seasonal merchandise through its signature Back Room.
Last updated August 24, 2026
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Overview
Loehmann's was an American off-price department-store retailer founded in Brooklyn, New York, in 1921 by former department-store buyer Frieda Loehmann and her son Charles. The business began in a converted automobile showroom at Bedford Avenue and Sterling Place, where the founders purchased seasonal overstocks from prominent New York designers and sold them below conventional department-store prices. This buying model, centered on branded merchandise offered at a discount, became the foundation of the company's identity and was later expressed most visibly through its signature Back Room concept. Frieda Loehmann initially resisted expansion and continued operating the original Brooklyn store. Charles nevertheless opened a second location on Fordham Road in the Bronx in 1930, extending the same off-price formula to another New York neighborhood. Frieda later purchased the original building and lived above the store. After her death in 1962, the Bedford Avenue location closed, while the Charles C. Loehmann company pursued broader expansion and eventually became publicly traded. The chain entered a period of corporate ownership and significant growth during the 1980s and 1990s. Associated Dry Goods acquired Loehmann's in 1983, and Associated Dry Goods was subsequently absorbed by The May Department Stores Company in 1986. May sold the 77-store chain in 1988 to an investor group led by Sefinco Ltd. and the Sprout Group. Loehmann's returned to public ownership in 1996. By 1999, its high point in store count, the company operated approximately 100 stores across 17 states. Loehmann's growth was accompanied by recurring financial pressure. The company entered Chapter 11 bankruptcy in 1999 and emerged in 2000. Arcapita acquired it in 2004 for $177 million, and Istithmar purchased it in 2006 for $300 million. A second Chapter 11 filing followed in 2010 after the company could not secure an extension of its debt arrangements. The restructuring included store closures, new financing, debt elimination, and cost reductions, allowing Loehmann's to exit bankruptcy in early 2011. The company filed for Chapter 11 for a third time in December 2013, reporting approximately $100 million in assets and $500 million in debt. Its stores began liquidation in January 2014, and the last physical store closed on February 26, 2014. The brand then continued as an online retailer for a period, but online operations ceased in 2018. During the 2013–2014 bankruptcy process, different buyers acquired the intellectual property, customer lists, inventory, fixtures, accounts receivable, and cash-related assets. In 2017, after the expiration of Loehmann's Manhattan lease, Barneys New York opened a downtown location in the same Chelsea building. The Loehmann's name later returned to retail news through a reported acquisition by Century 21. Plans described in 2025 called for a renewed off-price presence beginning with pop-up locations, including a site in Deer Park and proposed locations in Florida and New York City, with a broader return discussed for 2026. The historical operating chain, however, remains defunct following the closure of its stores and the end of its later online business.
History
Loehmann's originated in 1921 when Frieda Loehmann, a former department-store buyer, and her son Charles opened a store in a former automobile showroom in Brooklyn, New York. They specialized in buying seasonal overstocks from leading New York designers and reselling them at bargain prices. The store's differentiated buying strategy established the retailer's long-term off-price identity. Frieda preferred to operate a single store, but Charles expanded the concept by opening a second Loehmann's location on Fordham Road in the Bronx in 1930. Frieda continued to manage the original Bedford Avenue store, eventually buying its building and living in quarters above it. Following her death in 1962, the original store closed, and the Charles C. Loehmann company began expanding beyond its initial Brooklyn base. The business became publicly traded during this growth phase. Corporate ownership became increasingly important in the 1980s. Associated Dry Goods acquired Loehmann's in 1983. When The May Department Stores Company merged with Associated Dry Goods in 1986, Loehmann's became part of the May organization. May sold the 77-store chain in 1988 to an investor group led by Sefinco Ltd. and the Sprout Group. The company was taken public again in May 1996. Its store network reached approximately 100 locations in 17 states by 1999, making it a significant national off-price fashion retailer. The company then experienced repeated financial restructurings. It filed for Chapter 11 in May 1999 and emerged on September 6, 2000. Arcapita, formerly known as Crescent Capital, acquired Loehmann's in 2004 for a reported $177 million. In 2006, Arcapita sold the chain to Istithmar for a reported $300 million. Loehmann's filed for Chapter 11 again on November 15, 2010, after negotiations with creditors over a debt extension failed. The retailer announced eight store closures during that process and emerged in February 2011 after securing reported financing and reducing debt and other costs. On December 16, 2013, Loehmann's filed for Chapter 11 for a third time. The filing reflected a severe balance-sheet imbalance, with approximately $100 million in assets and $500 million in debt. The chain began a final going-out-of-business sale on January 8, 2014. The remaining merchandise was consolidated and liquidated, and the last store closed on February 26, 2014. Esopus Creek Value Series Fund acquired intellectual-property assets and customer lists, while Tiger Capital Group, A&G Realty Partners, and SB Capital Group acquired various operating assets, including inventory, fixtures, accounts receivable, and cash-related assets. After its physical shutdown, Loehmann's operated online for a time. The online business ceased operations in 2018. The former Manhattan location in Chelsea later became a Barneys New York site after the Loehmann's lease expired in 2017. In 2025, reports stated that Century 21 had purchased the brand and was preparing a return through off-price pop-up stores, initially in Deer Park and potentially later in Florida and New York City. A 2026 return was discussed, but the historical chain's former nationwide store network has not been restored.
- 2025
Reported Century 21 revival plan
[1]Reports described Century 21 as the brand's new owner and discussed a return through off-price pop-up locations.
- 2018
Online operations cease
[1]The post-store online retail operation stopped operating.
- 2014
Physical retail operations end
[1]The final store closed on February 26 after a chainwide liquidation, with the brand moving temporarily to online-only retailing.
- 2013
Third Chapter 11 filing
[1]Loehmann's entered a third bankruptcy case with reported assets of $100 million and debt of $500 million.
- 2010
Second Chapter 11 filing
[1]The retailer sought bankruptcy protection again and announced eight store closures.
- 2006
Istithmar acquisition
[1]Istithmar purchased Loehmann's from Arcapita for a reported $300 million.
- 2004
Arcapita acquisition
[1]Arcapita acquired Loehmann's for a reported $177 million.
- 1999
Peak store footprint and first listed bankruptcy
[1]The chain reached approximately 100 stores in 17 states and filed for Chapter 11 bankruptcy protection.
- 1996
Company returns to public markets
[1]Loehmann's was taken public again in May.
- 1988
May sells the 77-store chain
[1]Following May Department Stores Company's acquisition of Associated Dry Goods, Loehmann's was sold to an investor group led by Sefinco and the Sprout Group.
Products and positioning
An off-price fashion retailer offering designer and department-store merchandise at reduced prices, with a treasure-hunt shopping experience centered on branded overstocks and the Back Room.
Off-price designer retail
The Back Room
The Back Room was Loehmann's defining retail concept: a dedicated area where shoppers could find designer and premium fashion merchandise at reduced prices. It represented the chain's treasure-hunt approach and differentiated Loehmann's from conventional full-price department stores.
Fashion · 1921
Discounted designer apparel
Loehmann's built its assortment around seasonal overstocks and other discounted merchandise sourced from prominent designers and fashion suppliers. The assortment primarily covered women's and men's clothing, with availability varying according to purchasing opportunities.
Accessories
Fashion accessories
The retailer also sold fashion accessories associated with its off-price apparel proposition, including shoes, handbags, and related seasonal goods when available through its buying network.
Brand decisions
2025
Reported revival through pop-up retailStrategyBackground
After the brand had been inactive since the end of its online operation, reports described a purchase by Century 21.
Action taken
The reported plan was to reintroduce Loehmann's through off-price pop-up stores, beginning in Deer Park and potentially expanding to Florida and New York City.
Aftermath
A broader return was discussed for 2026, but the scope and execution of the revival remain subject to confirmation.
2014
Shift from stores to online retailingStrategyBackground
The third bankruptcy proceeding made continued operation of the physical store network unsustainable.
Action taken
Loehmann's liquidated its stores, closed the last location, and continued as an online-only retailer.
Aftermath
The online business later ceased operations in 2018.
2010
Restructuring after the second bankruptcy filingStrategyBackground
Loehmann's sought Chapter 11 protection after failing to secure a debt extension from creditors.
Action taken
The company closed eight stores, obtained reported financing, and pursued debt and cost reductions.
Aftermath
Loehmann's emerged from bankruptcy in February 2011, but later entered bankruptcy again in 2013.
Reported financing and restructuring reductions. (2011 restructuring)
Sources1 sources
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