Istithmar and Whippoorwill plan to invest $25 million when Loehmann's exits Chapter 11. The retailer's bankruptcy petition listed having between $100 million and $500 million in assets and debts. Loehmann's will transfer 51 percent of its new equity to its creditors and retain its 49.1 percent of the company with Istithmar and Whippoorwill.
Loehmann's operates 45-plus stores in 12 states, offering discounts on designer brands such as Diane Von Furstenberg and Michael Kors. Earlier this month, the retailer said it would close up to 15 stores.
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