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Following Loehmann's Chapter 11 bankruptcy filing last month, pieces of the nearly century-old discount department store that originated in Brooklyn is now being sold to the highest bidder in court-approved auctions, according to WWD.
Everything from intellectual property to store leases to furniture and fixtures has been snagged by multiple firms. In the meantime, Loehmann's stores are expected to hold going-out-of-business sales through the end of March to clear out their inventory.
"The chain is essentially the last of its line," WWD had previously noted, "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." With the advent of flash sale sites selling current season merchandise at even higher discounts, shoppers are less motivated to pick through Loehmann's last-season wares.
Update: Things just hit a new level of sad: according the Loehmann's site, they're no longer accepting online orders.
The majority of the block it occupies on Seventh Avenue, however, has already been spoken for. Barneys New York confirmed last month that it will return to its original flagship location on 17th Street. "The downtown store will have a huge presence with a huge facade and two entrances," Barneys CEO Mark Lee told WWD. In short, the block is going from low price to full-price.
· Loehmann's IP Assets Sold [WWD]
· Barney's New Downtown Flagship: Their Original Chelsea Store [Racked NY]
· All Loehmann's Posts [Racked NY]