Esopus Creek Value Series Fund LP-Series A, has closed on the trademarks and intellectual property of bankrupt Loehmann’s Holdings Inc.
The deal gives Esopus the department store’s portfolio of brands, e-commerce websites and customer list.
Esopus is evaluating different opportunities and partnerships for the Loehmann’s portfolio over the next few months.
Loehmann’s, headquartered in the Bronx, New York, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York on Dec. 15. The company listed assets between $50 million and $100 million, and liabilities between $100 million and $500 million on its petition.
Loehmann’s operated 39 stores in 11 states, as well as Loehmanns.com. This is the third bankruptcy case for the debtor, which previously filed in May 1999, and in November 2010.
After the second bankruptcy, Loehmann’s experienced weak financial performance due to unsuccessful strategic, financial and operating decisions, the company said in court papers. Those decisions caused store underperformance, reduced margins, lower inventory turnover and lack of liquidity.
The department store also blamed customer spending patterns, increased competition in the off-price retail channel and limited access to capital.
Loehmann’s began exploring strategic alternatives in September and hired business consultants Clear Thinking Group LLC and investment bank Canaccord Genuity Inc. After going through a sale process, Loehmann’s determined liquidation was the best option, the company said in court papers.