Bankrupt department store Loehmann’s received the go-ahead from the U.S. Bankruptcy Court in Manhattan to sell its inventory for $16.4 million.
Liquidators Tiger Capital Group LLC and SB Capital Group LLC had the winning bid at last week’s auction to pay about 30 cents on the dollar for inventory valued at $51 million. Esopus Creek Value Series Fund LP also gained approval to acquire the store’s intellectual property and customer lists for $850,000.
“This is the proverbial melting ice cube,” Judge Martin Glenn said today, Bloomberg News reported. “Unless the sale takes place promptly, value will be lost.”
As part of the two-day auction, Midtown-based investment company Madison Capital acquired several unexpired leases formerly held by Loehmann’s, including 37,157 square feet in the Ansonia at 2101 Broadway that sources said was worth $7.5 million, The Real Deal reported. Loehmann’s filed for Chapter 11 bankruptcy protection on Dec. 15. [Bloomberg News] — Mark Maurer