When the fashion discount chain Loehmann's filed for its third and final bankruptcy late last year, the company partly blamed its failure on being "late in introducing the e-commerce channel relative to its peers in the 'off-price' retail sector." The chain went on to close all its stores, but in a strange-but-true twist of fate is being reborn as an e-tail operation.
The Loehmann's name and assets were acquired by the Esopus Creek Series Fund, which hired CAK Entertainment to rebuild the equity of the retail brand.
Charles Koppelman, founder of CAK, told Women's Wear Daily, that the new site will launch next month and continue in the Loehmann's tradition of offering name brand fashions at discount prices.
The new Loehmann's will make use of social media and focus more intently on younger consumers. "They want to have a dialogue with brands about what they want to see and what brands they want," Mr. Kopppelman told WWD. "We are going to talk to them, helping with the product and brand selection. They will tell us what they want and help us with our buying."
How likely is Loehmann's to succeed as an online-only merchant?