Loehmann's may have closed its doors in February, but the retailer is not gone for good. The off-price retailer is set to make its return as an online-only store in May.
Loehmann's name and intellectual properties — including its customer list — were acquired by hedge fund Esopus Creek Value Series Fund LP in bankruptcy court. The IP assets were acquired for $750,000 and the customer lists for $100,000. Esopus has hired brand development firm CAK Entertainment to launch the Loehmann's e-commerce website and market the retailer to a younger shopper.
It's an interesting move, given that Loehmann's lack of online presence was cited by its executives as a reason for the chain's closure. Loehmann's had been slow to introduce e-commerce. But the newly revamped online store will operate under a new Web address to be unveiled next month, but will remain focused on highly discounted brands. The new website will also link to revamped social media platforms to reach the millennial shopper.
"Research tells us the younger customer shops online," Charles Koppelman, founder CAK Entertainment told Women's Wear Daily. "They want to have a dialogue with brands about what they want to see and what brands they want. We are going to talk to them, helping with the product and brand selection. They will tell us what they want and help us with our buying."
Loehmann's filed for bankruptcy in December after 93 years in business. The last of Loehmann's 39 stores closed their doors for good on Feb. 26, as the chain ultimately succumbed to the same financial woes that shut down fellow discount retailers Daffy's and Filene's Basement.
Discount shoppers abandoned Loehmann's in favor of market leaders T.J. Maxx and Marshalls. According to a 2013 report by market research firm Mintel, 46 percent of discount shoppers said they had visited T.J. Maxx and Marshalls over the last 12 months. Only 2 percent reported visiting a Loehmann's.
-See this Women's Wear Daily article
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