Loehmann's will close 15 stores over the next 12 months. Loehmann's Capital Corp, which is restructuring its debt, said more than half of its noteholders approved a consent solicitation that would let it close a quarter of its stores.
The company, owned by Dubai investment group Istithmar, has 60 stores in 16 states
The consent solicitation allows for a higher cap on borrowing that will
let it increase its revolving credit facility by $10 million, the
company said.
Loehmann's in September opened a debt exchange due Oct. 27 to exchange
two classes of notes due in 2011 for corresponding notes due in 2014. It
needs 97 percent of holders to approve the exchange.
According to an Oct. 14 release, the deadline for holders to receive
$1,000 of new notes in exchange for $1,000 of old notes is Oct. 22. A
previous release said that date to receive those exchange terms was Oct.
13.
Holders who exchange after Oct. 22 will receive $970 in new notes for each $1,000 in old notes.
