For the third time in 15 years, Loehmann’s will file for bankruptcy reporting $100 million in assets and $500 million in liabilities for 2013. The designer discount retailer previous filed Chapter 11 in 1999 and 2010 as the market proved to get the best of them.
It’s no secret that the way Americans shop has rapidly changed over the past ten years. In addition to more brick-and-morter options like Marshalls, TJ Maxx and Ross there are also more immediate factors to Loehmann’s demise. As The Huffington Post notes, “‘high street’ retailers like Zara, H&M and Mango are delivering near replicas of runway trends faster than ever, making it unnecessary to wait even one month, much less an entire season, to get the new trends at an affordable price.”
In addition to “fast fashion” options, there are also more technologically convenient ways to score deals without searching from aisle to aisle. Sites like Net-A-Porter, The OUtnet and BlueFly put the convenience of never touch designer duds to a simple click.
The last, and most major contributor to the change in shopping is the serious dedicated low-end retailers are making to appeal to the style conscious shopper. Every month we’re reporting another high-end designer like Isabel Marant, Philip Lim, Osei Duro, Maison Martin Margiela and many more collaborating with the Targets of the world. With all these factors in place, it’s a wonder that Loehmann’s has survived this long.
Yet in still, like the burden magazines carry in a digital world, we hope Loehmann’s finds a resourceful way to move into the future. In the meantime, we’ll think of better times..