Tag Archives: bankruptcy

Loehmann’s sets sails for “Going Out of Business” sales


| mmcgoldrick@homereporter.com

It looks like local landmark Loehmann’s won’t make it to 100. The premier upscale off-price specialty retailer – just seven years short of a century old – has announced its official “Going out of Business” sale.

Loehmann’s first opened in Crown Heights in 1921 when Frieda Loehmann made her rounds to high-end designer showrooms, turning overstocks, cancellations and samples into a discount shopper’s paradise – with a wholesale price. Often called a trendsetter of a time where women rarely played that role, Loehmann’s detail-oriented approach to discount retail set the standard for an industry to come.

The store soon moved to its flagship Duryea Place location, just off Flatbush Avenue in the heart of that strip’s shopping district.

“There is no store quite like Loehmann’s,” said Scott Bernstein, COO of SB Capital Group. “During its more than 90 years in business, the Loehmann’s name became synonymous with great quality and value.”

On Tuesday, the U.S. Bankruptcy Court approved an order authorizing a joint venture formed by SB Capital Group, LLC, Tiger Capital Group, LLC, and A & G Realty Partners, to conduct “Going out of Business” sales in each of the superstore’s 39 locations and 11 states across the country.

That includes its Sheepshead Bay outpost at 2807 East 21st St., which opened in the mid- 1990s, around the same time the store’s Duryea Place location shut its doors.

Loehmann’s also has locations in Chelsea and the Upper West Side in Manhattan, in the Riverdale section of the Bronx, and in New Hyde Park and Hewlett, Long Island.

It may be bittersweet, but savvy shoppers are about to be dealt more than just a sweet New Year’s sale.

“A sale of this nature in these stores will be historical,” said Bernstein. “With millions of dollars of inventory from some of the greatest names in fashion for women and men, the savings, even for Loehmann’s traditional customers, will be unprecedented.”

More than $65 million of current in-season inventory – as well as new arrivals – will be liquidated during the bittersweet “Going out of Business” sales, which begins Thursday, Jan. 9.

 

RECOMMENDED STORIES

Former St. John’s Hospital, adjacent parking garage sell for $47 million


| aaltamirano@queenscourier.com

Photo Courtesy Massey Knakal

The former home to St. John’s Hospital will soon be transformed into a mixed-use building.

Real-estate company Massey Knakal announced it handled the $47 million sale of the 90-02 Queens Blvd building in Elmhurst, together with a five-story parking garage located at 87-28 58th Ave.

“For the first time, Queens is beginning to see a trickle-down effect of rising rents from primary neighborhoods, like Long Island City,” said Stephen Palmese, senior executive vice president of sales for Massey Knakal, who handled the sale together with company partner Thomas A. Donovan. “This is similar to Williamsburg’s effect on Bushwick. As a result, secondary markets, like Elmhurst, which also have great transportation, are experience strong increases in residential rent.”

St. John’s Hospital closed its doors in 2009 after Caritas Health Care, which ran the hospital, filed bankruptcy. Brooklyn-based developer called 89-52 Queens LLC then purchased the property and was the most recent owner up until the sale.

Approved plans from the city’s Board of Standards and Appeals show the new owner plans to convert the about 266,322-square-foot former hospital building into a mixed-use building with ground floor and lower level retail, medical facilities on the second floor and residential units on the remaining floors, according to Massey Knakal.

The about 86,400-square-foot parking garage, located behind the building, holds a capacity of 290 parking spots.

“This property is located across the street from the Queens Center mall, which is one of the top grossing malls in the U.S.,” said Donovan.

The property is located across the street from Queens Center and Queens Place Mall and near four major expressways.

 

RECOMMENDED STORIES

Queens’ Morning Roundup


| lguerre@queenscourier.com

morning roundup

TODAY’S FORECAST

Clear in the morning, then partly cloudy with thunderstorms and rain showers. High of 95F with a heat index of 100F. Breezy. Winds from the SW at 10 to 20 mph. Chance of rain 20%.

EVENT OF THE DAY: Classic Film Fridays

A Better Jamaica presents The Spy Who Loved Me. James Bond joins forces with dangerous and sexy Russian agent Major Anya Amasova to battle villainous Jaws, a mad genius who plans to destroy the earth with a nuclear holocaust and rebuild it underwater. Free at Rufus King Park . Click here for more info or to submit an event of your own

Billions in debt, Detroit tumbles into insolvency 

Detroit, the cradle of America’s automobile industry and once the nation’s fourth-most-populous city, filed for bankruptcy on Thursday, the largest American city ever to take such a course. Read more: The New York Times 

Reality (show) bites 

A Queens man who thought he won his own yogurt franchise on a Food Network reality show claims in a new lawsuit that he got stiffed on the jackpot. Kris Herrera, 34, of Corona said he signed off on letting the episode of “Giving You the Business” run only because he thought he would be getting his own outlet of the yogurt chain 16 Handles. Read more: New York Post

Billionaire John Catsimatidis shows diverse financial portfolio of companies

It’s no secret he’s a fat cat. But Republican mayoral contender John Catsimatidis’ first city financial disclosure report since announcing his candidacy reveals that the billionaire grocery magnate is also a real estate baron who owns an oil refining company and a charter jet business that’s flown rock stars like Paul McCartney and the Goo Goo Dolls. Read more: New York Daily News 

 Derailment to Hamstring morning commute for Metro-North Hudson Line customers 

Commuters who rely on the Metro-North Hudson line will likely have to find a different way to get to work Friday morning. A freight train derailment in the Bronx forced service on the Hudson line to be suspended indefinitely, the transit agency announced Thursday night. Read more: CBS

New poll shows Quinn leading dems in mayoral race 

A new poll released this morning finds City Council Speaker Christine Quinn is rising above former Rep. Anthony Weiner in the Democratic race for mayor, with undecided voters still likely to play a big role. The Siena College-New York Times poll finds Quinn getting the support of 27 percent of Democratic voters, compared to Weiner with 18 percent. Read more: NY1

 Hamill: Howard Beach mom who lost her son shares Trayvon Martin’s mother’s pain

The mother weeps for the mother. More than 25 years after her son was killed in Howard Beach, the mother of Michael Griffith grieves for the mother of Trayvon Martin. Read more: New York Daily News

Strauss Discount Auto closes stores due to bankruptcy


| ChristopherBrito@queenscourier.com

THE COURIER/Photo by Christopher Brito

More than 40 Strauss Discount Auto stores scattered throughout the region — including six in Queens — have gone bankrupt, leaving more than 600 employees without a job and customers shocked by the sudden shuttering.

Strauss Auto, a New Jersey-based retailer primarily known for selling car accessories and parts, encountered insurmountable financial difficulties for the third time in six years, leading to a Chapter 11 petition, according to the New Jersey Bankruptcy Court.

The company, formally known as SDA Inc., filed for bankruptcy on June 4, court records show, and is said to be paced for re-organization. The chain’s 44 stores throughout New York, New Jersey and Pennsylvania are in the process of being shut down, according to Bill Belinowicz, director of real estate of Strauss Discount Auto.

“We practically found out overnight,” said John, an employee at a Bayside Strauss store, who did not give his last name. “All our managers were fired. Now, we have to move everything out of the store.”

Movers and workers were present at the 204-11 Northern Boulevard store on June 18, dismantling what was left of the location.

The retail chain, founded by Herman Schlenger and Harry Roth in New Jersey as R & S Home and Auto Stores, has supplied customers with car-related products since 1919.

“I can’t believe it. This place is gone. It was just here a couple days ago,” said Timothy, a customer from Flushing.

This Morning’s Headlines


| jlane@queenscourier.com

Graphic by Jay Lane

Ex-NAACP big rips Al & Jesse for handling of Trayvon Martin shooting

The furor over the shooting of Florida teen Trayvon Martin is being “exploited” by the likes of Jesse Jackson and Al Sharpton to “racially divide the country,” a civil-rights leader charged yesterday. Martin’s “family should be outraged at the fact that they’re using this child as the bait to inflame racial passions,” the Rev. C.L. Bryant, a former NAACP leader, said of the 17-year-old hoodie-wearing black youth who was shot dead by a mixed white-Latino neighborhood-watch volunteer. Read More: New York Post

Shooter’s claim to police: Trayvon Martin pounced on me

Trayvon Martin was the real aggressor in his deadly encounter with George Zimmerman — punching the neighborhood-watch volunteer, slamming his head on the sidewalk and grabbing for his gun, according to Zimmerman’s account to detectives. The 28-year-old cop wannabe painted himself as the victim in the fatal brawl, telling investigators he was returning to his SUV and trying to call 911 when the unarmed 17-year-old approached him from behind and threw the first punch, according to published reports. Read More: New York Post

Bell cop duo out — but get to keep pensions

Two veteran cops ousted from the NYPD for their roles in the Sean Bell killing turned in their retirement papers yesterday. Detectives Marc Cooper and Michael Oliver walked into One Police Plaza to sign their paperwork. They left without comment — but with their lucrative pensions still in place. The forced retirements came after an internal NYPD trial determined the detectives acted improperly when they and fellow officers gunned down the unarmed Bell in a 50-bullet fusillade the night before his wedding in 2006. Read More: New York Post

 

Intruders shoot man in UWS apartment

An Upper West Side man was shot yesterday during an attempted robbery in his apartment, cops said. The 20-year-old victim said in a 911 call that he let two men into his building on West 100th Street near Riverside Drive believing they were deliverymen, and they attempted to rob him in his fifth-floor, blasting him in the leg, according to an FDNY spokesperson and police sources. Police are investigating his claims. Read More: New York Post

DOE Releases List Of Schools With PCB Leaks, Critics Want Better Clean-Up Efforts

Hundreds of city schools in the five boroughs are contaminated with PCB, a toxic material that can cause serious health problems, and hundreds more school may also have the substance. Department of Education officials say they are working as hard as it can to fix the problem but critics say it’s not hard enough. NY1′s Education reporter Lindsey Christ filed the following exclusive report. Read More: NY1

 

State Health Department To Shut Down Queens’ Peninsula Hospital

Peninsula Hospital Center will close for good, following months of efforts to keep the failing hospital in Queens open. The State Department of Health said Monday that Peninsula Hospital officials will be required to submit a closure plan. According to the Queens borough president, up to 1,000 jobs are on the way out. Its closure will leave the 100,000 residents of the Rockaways with only one hospital. Health officials shut down Peninsula’s laboratory last month after it failed an inspection. The hospital in Edgemere was also barred from admitting new patients until issues were resolved. Without revenue from patients, the hospital is unable to run daily operations. Read More: NY1

 

 

Dawa Lama, mom who dumped newborn in trash, pleads guilty to manslaughter

A Queens mom who dumped her newborn daughter in a hospital trash can out of fear her mother would learn of her pregnancy pleaded guilty to a manslaughter charge Monday. Dawa Lama, 23, faces 10 years in prison as part of a plea deal worked out with Queens prosecutors. During a court appearance, Queens Supreme Court Justice Lenora Gerald told Lama that she’ll be deported to her native Nepal once she finishes her sentence. Read More: Daily News

 

Trustee named, Peninsula expects to exit bankruptcy


| mchan@queenscourier.com

OLYMPUS DIGITAL CAMERA

The court-ordered bankruptcy trustee appointed to take over all operations at Peninsula Hospital has been named, federal officials said.

Lori Lapin Jones — a Long Island bankruptcy law attorney — was chosen by the U.S. Trustee’s office, an agency under the U.S. Department of Justice, to head the embattled Far Rockaway facility.

“The trustee who was selected was a very good choice. She’s an extraordinarily competent bankruptcy attorney who has tremendous experience serving as a trustee,” said Howard Fensterman, Peninsula’s former attorney, who represented the hospital before the court-mandated change. “I look forward to her getting the hospital back open and leading the hospital out of bankruptcy.”

Fensterman said hospital officials had consented to the court-ordered change, and he said he still expects Peninsula to exit bankruptcy in less than 60 days.

Jones currently serves as a Chapter 7 trustee on the panel of Trustees for the Eastern District of New York and as a court-appointed mediator in the Southern and Eastern Districts of New York.

She started her own Great Neck-based law firm — Lori Lapin Jones PLLC — in 2005, representing a wide variety of parties in out-of-court restructurings and in large and small Chapter 11 and Chapter 7 cases in courts around the country.

In 2009, she received the Long Island Business News’ award for being one of the top 50 most influential women in business.

These credentials, Fensterman said, will help her push the hospital toward recovery.

Two weeks ago, roughly 240 employees at Peninsula were temporarily laid off, officials said. The sudden terminations were instituted short-term, they said, in order to conserve cash while the hospital is “on diversion.”

Peninsula was also forced to halt its emergency care services for a period of 30 days after failed state health inspections found the hospital’s lab to be “a danger and threat” to patients on February 23.

A second state mandate also ordered the hospital to stop admitting new patients, cancel all surgeries and procedures and suspend any activities that depend upon laboratory services while a plan to transfer inpatients to other facilities was developed.

Peninsula Hospital declined to comment in regards to the hospital’s new overseer.

American continues to fly, despite Chapter 11


| mchan@queenscourier.com

American Airlines — and its parent company AMR Corporation — have filed for reorganization under Chapter 11 bankruptcy protection, but the company said it is still operating normal flight schedules, as well as honoring tickets and refunds.

“This was a difficult decision, but it is the necessary and right path for us to take – and take now – to become a more efficient, financially stronger and competitive airline,” said AMR President Thomas Horton, who is also the company’s newly-appointed chairperson and CEO. “We have met our challenges head on, taking all possible action to secure our long-term position.”

AMR filed voluntary petitions for Chapter 11 in the United States Bankruptcy Court for the Southern District of New York on November 29.

The Chapter 11 process enables the company to continue conducting normal business operations while they restructure their debt, costs and other obligations. According to the U.S. Courts, Chapter 11 debtors usually seek debt relief by proposing a plan of reorganization to keep its business alive and pay creditors over time.

According to a statement released by the company, AMR has $4.1 billion in unrestricted cash and short-term investments to ensure uninterrupted supply of goods and services during the proceedings. The money allotted will go toward fully maintaining AAdvantage frequent flyer and other customer service programs, ensuring all AAdvantage miles and elites status earned by members remain secure and intact, providing employee wages, healthcare coverage, vacation and other benefits without interruption and paying suppliers for goods and services received during the reorganization process.

AMR will be filing monthly operating reports with the Bankruptcy Court and also plans to post monthly operating reports on the Investor Relations section of their website, AA.com.

“Our very substantial cost disadvantage compared to our larger competitors, all of which restructured their costs and debt through Chapter 11, has become increasingly untenable given the accelerating impact of global economic uncertainty and resulting revenue instability, volatile and rising fuel prices and intensifying competitive challenges,” Horton said.

Competitors Delta, United, Continental and US Airways have all previously filed for Chapter 11 reorganizations.

“But as we have made clear with increasing urgency in recent weeks, we must address our cost structure, including labor costs, to enable us to capitalize on [our] foundational strengths and secure our future,” said Horton.

For more information, visit AA.com/restructuring.