Loehmann’s to liquidate inventory

Founded in Brooklyn 93 years ago, discount clothing retailer Loehmann’s expanded to stores in 11 states, but a U.S. bankruptcy court approved plans on Jan. 8 for a group of three outside groups to conduct “going out of business sales.”

The company founded in 1921 in Crown Heights will have its inventory sold off following its third bankruptcy filing in 15 years. In 1999, Loehmann’s closed 25 stores the first time it declared bankruptcy. In 2010, it shut down nine stores. All 40 remaining stores will close.

In November, the retailer tried unsuccessfully to find a buyer. The company filed for bankruptcy protection in December.

Declining economic conditions, intense competition from other discount and outlet retailers and online competition are the primary culprits for its demise, company officials said.

The Hewlett store on Broadway has operated for at least 50 years.