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Article: LOEHMANN'S SCRAMBLES TO BEAT CHAPTER 11: IN RESTRUCTURING TALKS WITH CREDITORS; ANXIOUS VENDORS HALT SHIPMENTS.
- Article from:
- Crain's New York Business
- Article date:
- May 17, 1999
- Author:
CopyrightCOPYRIGHT 1999 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Loehmann's Inc. is desperately negotiating with creditors to avoid filing for Chapter 11 bankruptcy protection.
The Bronx-based company may default on a $5.5 million interest payment due today, and last week some nervous vendors stopped shipping to the off-price apparel retailer. Anxiety increased when it was learned that Loehmann's chief financial officer had abruptly left the company.
"We currently have a hold on the account," says Bob Carbonell, director of credit at Bernard Sands, a firm that advises vendors on retailers' creditworthiness. "We are waiting for a discussion with Loehmann's management."
Loehmann's Chief Executive Robert ...