Loehmann’s future to be determined

The fate of Loehmann’s, a discount designer apparel chain that filed for bankruptcy for the third time on Dec. 16 — and which has a location at 1296 Broadway in Hewlett — will be decided at a Jan. 4 hearing at U.S. Bankruptcy Court in Manhattan, according to company spokeswoman Melissa Krantz.
“When the company went to bankruptcy court, there were three entities who wanted to acquire it] ,and the judge wanted a more open process whereby others who may be interested in the company’s assets could participate,” Krantz explained. “[On Jan. 4, Judge Martin Glenn] will hear what others may have to offer, whether it be someone who can acquire the company in its entirety, in pieces or whether there will be a liquidator.”
Loehmann’s, which was founded in 1921 in Crown Heights, Brooklyn, currently has 40 stores and 1,600 employees. It has been in Hewlett for at least 50 years. The company closed 25 stores when it first declared bankruptcy in 1999, and shut down nine more stores when it filed for the second time in 2010.
Gloria Boris, a Woodmere resident who was rummaging through the racks at Loehmann’s in Hewlett on Dec. 23, said she has been shopping at the retailer since she moved to the Five Towns 42 years ago. “I began shopping at the Bronx location, then in Brooklyn, Westchester and here in Hewlett,” Boris said. “It’s really convenient.”
Despite the bankruptcy proceedings, Boris does not see the store shutting its doors. “I don’t think that will ever happen,” she said. “They’ll work under bankruptcy and hang on for as long as they can.”

If, however, the Broadway location were to become vacant, Boris said, she wouldn’t have high hopes for the building. “I wouldn’t like to see it become a fruit market because there’s a Trader Joe’s across the street,” she said. “I think it would sit empty for a long time, because the rent is high and it’s a big property.”
Atlantic Beach resident Sandy Kennedy said she doesn’t shop at Loehmann’s often, but was shocked that the business filed for bankruptcy. “I hope they don’t close,” she said. “They have great bargains, nice quality and it’s a good store; there’s always something for everyone.”
A New Jersey woman who was also shopping at the Hewlett store, but declined to give her name, said that a friend of hers who works for the Loehmann’s in the Bronx had been laid off. “My friend walked into work and was told by management that everyone was fired,” she said. “She worked there for five years, and if that’s how they treat their employees, that’s really upsetting.”
According to Krantz, there were two rounds of layoffs at the company’s Bronx headquarters, though the facility remains open.
Suffolk County resident Avalon Fox said she always visits Loehmann’s in Hewlett when she goes to her doctor’s office in the area. “They have a good selection and good prices,” she said. “Plus the store is really well organized.”
Fox’s jaw dropped when she was told that the company had filed for bankruptcy. “That’s so sad,” she said. “I hate to see stores go out of business. That’s really upsetting.”
After the Jan. 4 hearing, Krantz said, the company will be restructured. “At that point, the company will be controlled by whomever the judge deems an appropriate partner for the company,” she said. “The company must be restructured in order to pay off its creditors. [The judge] will look at what plan is best to restructure the company, whether it be selling its assets, closing stores or downsizing.”

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