DUBAI (AFP) — A Dubai government-controlled investment firm has announced its 300-million-dollar acquisition of New York-based retail chain Loehmann’s, which had gone bankrupt seven years ago.
Istithmar said in a statement that it bought Loehmann’s, a 60-store chain specialising in designer women’s and men’s apparel at discount prices, for 1.1 billion dirhams (300 million dollars) from Atlanta-based private equity firm Arcapita.
Loehmann’s, which was founded in 1921, was forced into bankruptcy protection in 1999 after over-expanding and embarked on a restructuring programme. The then publicly listed company was bought by Arcapita in 2004 for 178 million dollars and turned private.
Arcapita, which also has offices in Bahrain and London, finances its deals with funding from wealthy Gulf Arab investors, according to a statement on its website.