SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 18, 1999
LOEHMANN'S, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 0-28410 22-2341356
- --------------------------------------------------------------------------------
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
2500 Halsey Street
Bronx, New York 10461
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (718) 409-2000
--------------
Not applicable
- --------------------------------------------------------------------------------
Page 1
This document consists of 5 pages.
The exhibit index is contained on page 4 of this document.
<PAGE>
Item 3. Bankruptcy or Receivership
On May 18, 1999, Loehmann's, Inc. (the "Company") issued a press
release attached as Exhibit 99 hereto that announced that on May 18, 1999 the
Company filed a petition for relief under chapter 11 of the Bankruptcy Code in
the Bankruptcy Court for the District of Delaware.
Item 7. Exhibits.
(c) Exhibits.
99 Press Release, dated May 18,1999, announcing the
filing of a petition for relief under chapter 11 of
the Bankruptcy Code.
Page 2
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
LOEHMANN'S, INC.
By: /s/ Robert Glass
----------------
Name: Robert Glass
Title: President
Dated: May 18, 1999
Page 3
<PAGE>
EXHIBIT INDEX
Sequentially
Exhibit Numbered
Number Exhibit Page
- ------ ------- ------------
99 Press Release, dated May 18, 1999, 5
announcing the filing of a petition for relief
under chapter 11 of the Bankruptcy Code.
Page 4
Exhibit 99
Loehmann's, Inc. Announces Voluntary
Chapter 11 Filing
Business Editors
BRONX, N.Y.--(BUSINESS WIRE)--May 18, 1999--Loehmann's, Inc. (Nasdaq:LOEH)
today announced that it has filed a voluntary petition to reorganize under
Chapter 11 of the Bankruptcy Code. Under Chapter 11, Loehmann's will continue to
operate its business under court protection from creditors, while seeking to
work out a plan of reorganization. The petition was filed in the U.S. Bankruptcy
Court for the District of Delaware.
Loehmann's has secured $75 million of debtor-in-possession (DIP) financing
from Congress Financial, subject to Bankruptcy Court approval. The Company
believes that such financing should provide it with adequate funding throughout
the reorganization period.
The Company determined that in light of its sales, gross margin and EBITDA
levels in April, especially results for the latter part of the month which were
significantly below plan, there was substantial risk that the Company would be
unable to secure sufficient trade credit for the second half of the 1999 fiscal
year. Accordingly, the Company determined that seeking a Chapter 11 filing at
this time is in its best interests.
Robert N. Friedman, Chairman and Chief Executive Officer, said, "The
decision to file for Chapter 11, while difficult, represents the most viable
option for restructuring our Company. Over the past 18 months, we have
implemented several strategic initiatives including a more diversified
merchandise mix, an aggressive marketing campaign and improved operating
efficiencies. While we believe these strategies were the appropriate course of
action, they have yet to mature and generate the expected financial returns. The
Chapter 11 filing will provide additional time to build on these efforts and to
take the steps necessary to ensure a strong future for Loehmann's."
Mr. Friedman noted that, in connection with its restructuring efforts, the
Company plans to perform a comprehensive evaluation of its store base and its
cost structure. The Chapter 11 filing should not have an impact on the Company's
day-to-day operations.
"We are grateful for our productive relationships with our suppliers and
factors and the support and commitment of our associates. Loehmann's has a
time-tested concept, loyal customer base and strong name recognition among
consumers, which we believe will enable us to emerge from this process as a more
competitive Company," Mr. Friedman concluded.
In light of the Chapter 11 filing, the Company has decided to refrain from
making the interest payment on its 11 7/8% Senior Notes due 2003, which payment
was due on May 17, 1999. As of April 30, 1999, the Company had consolidated
assets (unaudited) of approximately $204 million, and consolidated liabilities
(unaudited) of approximately $203 million.
The Company also announced that Eliot Green has been named interim Chief
Financial Officer, effective immediately. Mr. Green is a financial consultant
who has extensive corporate restructuring experience. In addition, Norman S.
Matthews and Richard E. Kroon have resigned from their positions on the Board of
Directors.
Loehmann's, Inc. is a leading specialty retailer of well known designer and
brand name women's and men's fashion apparel, accessories and shoes at prices
that are typically 30% to 65% below department store prices. Loehmann's operates
69 stores in major metropolitan markets located in 22 states.
This release contains forward-looking information within the meaning of The
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve certain risks, uncertainties, and other factors which may
cause actual results to differ materially from such forward-looking information.
Such factors include, among other things, levels of sales and store traffic,
general economic and business conditions, competition, development and operating
costs, advertising and promotional efforts, brand awareness, and the existence
or absence of adverse publicity. For more detail, see the Company's annual and
quarterly reports filed with the Securities and Exchange Commission (a copy of
which may also be obtained from the Company at (718) 409-2000). Investors and
prospective investors are urged to consider the factors discussed above, and to
read the Company's annual and quarterly reports filed with the Securities and
Exchange Commission.
CONTACT: Loehmann's, Inc.
Investors: Stacey Bibi/Caroline Eustace
Media: Jeff Siegel
Morgen-Walke Associates
212/850-5600
Page 5
