- Jin Lee/Bloomberg
Judge Martin Glenn said it best during Loehmann’s first bankruptcy hearing Monday: “The headline oughta be that anyone holding a store credit better rush to the store and spend it because after the sale hearing, all bets are off.”
That’s right: Loehmann’s doesn’t plan to honor store credits from returned items and is leaving customers less than a month to spend the credits. Once going-out-of-business sales start, the credits will be worthless.
As part of its recently filed Chapter 11 case, Loehmann’s is selling the right to hold these liquidation sales at its 39 locations in early January, with sales to start around Jan. 13. Once those sales begin, the company said during its first bankruptcy-court appearance Monday, the credits won’t be honored.
On the other hand, Loehmann’s has agreed to honor outstanding gift cards during the liquidation sales.