Loehmann's, the designer discount retailer, filed for Chapter 11 bankruptcy protection late last night. It listed "assets of as much as $100 million and debt of as much as $500 million," and, as Women's Wear Daily points out, "The filing represents its third tour of bankruptcy court proceedings."
The store was founded in 1921 by Frieda Loehmann, who, a 1988 NY Times article explained, "bought up samples, canceled shipments and other leftover garments, which she then sold at a discount at her single store in Brooklyn." After her death, the store went public and opened more locations, reaching almost 100. Now there are 39 locations in 11 states.
Loehmann's previous bankruptcy filings were in 1999 and 2010. Apparently the retailer had recently approached buyers about reorganization—it seems its move towards personal shopping has not helped.
WWD adds, "The chain is essentially the last of its line, with former competitors Filene's Basement, Syms and Daffy's all hitting the retail graveyard after consumers determined that their business model of securing season-old merchandise and selling at up to 65 percent off an old model. That's because online competitors can off the same discount for current season merchandise."