09 January 2011
The US-based designer brand retailer Loehmann's, which is owned by Dubai World Unit Istithmar, has been granted court approval to its debt restructuring to be put to a creditor vote.
The US-based designer brand retailer Loehmann's, which is owned by Dubai World Unit Istithmar, has been granted court approval to its debt restructuring to be put to a creditor vote.
According to a Reuters report, a US bankruptcy court has given the go-ahead for the vote following the firm's filing for Chapter 11 bankruptcy two months ago.
The plan is reported to include a rights offering that will invest $25 million in the company and be backed up by both Istithmar and Whippoor Associates. The rights offering would reduce Loehmann's overall debt to $110 million. The firm has an estimated 46 stores left after it was forced to close a number of weaker locations.
© 7Days 2011
