Loehmann's secures court approval of bid procedures; auction Jan. 3

By Caroline Salls

Pittsburgh, Dec. 19 - Loehmann's Holdings Inc. received court approval of the bid procedures for the sale of its assets under an acquisition and agency agreement with a joint venture among SB Capital Group, LLC, Tiger Capital Group, LLC and A & G Realty Partners, LLC.

As previously reported, the company plans to complete a wind-down and liquidation of its stores through the acquisition and agency agreement.

The joint venture has agreed to a purchase price of $19 million in cash, subject to adjustments, 25% of any net proceeds received or realized by the sale or other disposition of additional agent merchandise, 75% of the portion of proceeds of the sale of specified consignment goods, 25% of net proceeds received or realized for the disposition of intellectual property and real property leases and assumption of other liabilities.

If the joint venture is not the high bidder at auction, Loehmann's will pay it a $250,000 break-up fee and reimburse up to $200,000 of its expenses.

Competing bids are due noon ET on Dec. 31. If one or more qualified competing bids are received, an auction will be held on Jan. 3.

The sale hearing is scheduled for Jan. 7.

Loehmann's, a Melville, N.Y.-based retailer of women's clothing, filed for bankruptcy on Dec. 15. The Chapter 11 case number is 13-14050.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.