Bankrupt Loehmann’s $16M inventory sale gets nod

U.S. Bankruptcy Judge Martin Glenn and Loehmann's at 2101 Broadway
U.S. Bankruptcy Judge Martin Glenn and Loehmann's at 2101 Broadway

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.

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“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