Case Summary: Loehmann’s

Loehmann’s

$35 million pre-petition revolver
$45 million DIP facility

Overview

Founded in 1921, Loehmann’s is a national off-price retailer selling designer and branded apparel, accessories and shoes. They operate 63 stores in 16 states.

Challenge

The company’s operations were materially impacted by the economic downturn as well as a highly leveraged balance sheet.

Loehmann’s sought bridge financing to support either an out-of-court or in-court restructuring of its balance sheet.

Solution

Crystal provided multiple commitements, including a $35 million pre-petition revolver, then a $45 million DIP facility as well as a committed emergence facility.

The facility and incremental availability allowed the Company to negotiate a debt-for-equity exchange with its bondholders and emerge from bankruptcy with a stronger balance sheet.

“Crystal Financial stepped up and provided us with a new line of credit at a crucial time in our restructuring process. Recognizing that Loehmann’s might need to undergo a bankruptcy process, they provided additional borrowing capacity under our revolver, enabling us to purchase more inventory from our vendors and keep our iconic brand alive. They also provided a DIP loan and an exit financing commitment to our company. As a result of their faith in us and the support of our vendors, we have successfully exited bankruptcy, restructured our balance sheet and saved 1,900 jobs. All of us at Loehmann’s appreciate the Crystal Financial team’s creativity, hard work, late nights and weekends it took to get us to a speedy exit from bankruptcy.”
Joe Melvin, interim CEO