NEW YORK, Dec. 17 (UPI) -- U.S. department chain Loehmann's which began in the Bronx in New York said Tuesday it would file for bankruptcy and close out its stores.
The company said in a court filing that it had signed an agreement with three liquidation firms to put the chain's assets up for sale.
The New York Daily News reported that Loehmann's, which has filed for bankruptcy twice in the past, was founded in 1921 by a mother and son, Frieda and Charles Loehmann.
As a moderately priced store with around 40 locations, Loehmann's is known for its "Back Room" offerings of low-priced designer women's wear.
The company is owned by Whippoorwill Associates, a turnaround company that pulled the chain out of bankruptcy in 2011.
Loehmann's said its court filing that it has $50 million to $100 million in assets, but debts as high as $500 million.
The company has been seeking a buyer, but that process "did not yield any meaningful bids and, ultimately, a special committee of the debtors board of directors approved the commencement of a wind-down and liquidation process," Loehmann's said in its court filing.