Loehmann's Files for Bankruptcy, Plans Sale to Liquidators

Loehmann's, the 92-year-old discount clothing chain, has filed for bankruptcy protection for a third time and said it's prepared to sell its assets to a group of liquidators. The Chapter 11 filing late on Sunday makes the Bronx, New York-based company the latest retailer selling designer wear at steep discounts to succumb to competition from rival chains, joining onetime competitors such as Daffy's, Filene's Basement and Syms. According to filings in the U.S. Bankruptcy Court in Manhattan, Loehmann's Holdings Inc. tried last month to sell its businesses as a going concern.