Business

Loehmann’s files for Chapter 11 protection

Everything must go at Loehmann’s — for good.

The 92-year-old clothing chain said it has filed for Chapter 11 bankruptcy protection, and that it has agreed to be acquired by a trio of liquidators.

Loehmann’s Chairman Michael Appel, in a statement Monday, blamed “increased competition in the off-price retail channel, coupled with limited access to capital.”

Founded in Brooklyn in 1921 by Frieda Loehmann and her son, Charles, Loehmann’s had survived the Great Recession, which in recent seasons claimed rivals Syms, Filene’s Basement, Daffy’s and Big M.

In a late-Sunday filing in Manhattan Bankruptcy Court, the Bronx-based retailer said it had been operating under the weight of $100 million in debt, estimating its assets between $50 million and $100 million.

The filing confirms The Post’s exclusive report last week that Loehmann’s was laying off workers at its headquarters and advising suppliers not to ship to stores as executives weighed a bankruptcy.

Loehmann’s said it has reached an agreement with liquidators SB Capital Group, Tiger Capital Group and A&G Realty Partners, but didn’t give further details.

Loehmann’s, with 39 stores nationwide that were said to generate about $300 million in revenue last year, has been propped up by Whippoorwill Associates, a turnaround firm that took control following a reorganization in early 2011.

For more than a year, insiders said cash from Whippoorwill has funded purchases of inventory and other operations, as so-called “factoring” companies that underwrite apparel shipments to retailers have refused to buy Loehmann’s receivables.