Bankrupt Loehmann’s $16M inventory sale gets nod

Jan.January 08, 2014 01:32 PM

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

Related Articles

Dean & Deluca CEO Sorapoj Techakraisri and Midtown Equities founder Joseph Cayre (Credit: Craig Barritt/Getty Images, Facebook, iStock)

In Chapter 11 filing, Dean & DeLuca reveals it owes Midtown Equities $22M

Jason Lee and 435 West 19th Street (Credit: Larry Ford, Google Maps)

West Chelsea’s Pool House condo project heads to bankruptcy auction

Simon Property Group CEO David Simon David Simon (Credit: Mireya Acierto/Getty Images, iStock)

Retail rout continues as Simon furloughs a third of employees

Almost 50,000 retail stores have closed across the country, and the restaurant industry has lost $25 billion in sales since March 1, (Credit: Getty Images)

US will see $20B in retail loans come due starting this week

Ample Hills Creamery co-founders Brian Smith and Jackie Cuscuna (Credit: Ilya S. Savenok/Getty Images for NYCWFF; iStock)

Ample Hills Creamery to lay off all 101 of its workers

(Credit: iStock)

NY restaurants, hotels warn of mass layoffs as US sees record jobless claims

The lifeline would allow the company to continue operating while it puts together a recovery plan. (Photo by Noam Galai/Getty Images)

Neiman Marcus in talks about possible bankruptcy: report

Charles and Jared Kushner and 229 West 43rd Street (Credit: Getty Images and Google Maps) 

Pandemic may finally push Kushner Cos’ Times Square retail space into default