Loehmann’s Eyes a Digital Resurrection with Century 21 as Secret Backer — Nearly a Decade After Bankruptcy

Edited by: TJVNews.com

Legendary discount fashion retailer Loehmann’s is poised for a comeback—this time, in cyberspace—and, as The New York Post has exclusively learned, the brand’s surprise champion is none other than former rival Century 21.

Once a titanic force in the off-price retail landscape, Loehmann’s vanished in 2014 after filing for its third bankruptcy, bringing an end to a near-century-long run of offering designer labels at deeply discounted prices. But now, a minimalist webpage has surfaced teasing a new chapter: “Loehmann’s is coming back. Online.” A tagline on the site adds: “The Back Room is (almost) back”—a nostalgic nod to the brand’s iconic section where fashion aficionados famously uncovered hidden designer treasures.

The site makes no mention of Century 21’s involvement. However, The New York Post has confirmed that Century 21 acquired the Loehmann’s name in 2020, six years after its liquidation. Raymond Gindi, CEO of Century 21, revealed the acquisition to the Post, though both he and COO Larry Mentzer declined to comment on the reported $300,000 price tag for the brand, a significant markdown from the $750,000 paid by hedge fund Esopus Creek Advisors in Loehmann’s 2014 bankruptcy auction.

According to the information provided in The New York Post report, Mentzer said the company is actively developing plans to bring back a “re-imagined Loehmann’s experience,” focused first on a digital relaunch with the possibility of brick-and-mortar stores to follow. “We are networking with a few partners,” he told the Post, adding that while physical store discussions are ongoing, “nothing is confirmed.”

The revival marks a strategic shift for Century 21, itself a storied New York-based retailer that has weathered its share of storms. Founded in 1961, Century 21 was forced to shutter all 13 of its stores in 2020 after a dispute with its insurance provider over pandemic-related losses, culminating in a Chapter 11 bankruptcy filing. The Gindi family, which owns the chain, blamed the insurer’s failure to honor business interruption claims. After a two-year hiatus, the flagship 22 Cortlandt Street location in downtown Manhattan—rebuilt after the September 11 attacks—reopened in 2022.

Century 21 has yet to fully re-enter the digital commerce space. Unlike Loehmann’s forthcoming e-commerce platform, Century 21 currently lacks an online store, focusing instead on its physical presence. That reality, according to the report in The New York Post, may explain the Gindis’ interest in reviving Loehmann’s under a digitally native model, effectively leapfrogging Century 21’s own e-commerce rollout.

The Gindis are also betting on Loehmann’s powerful name recognition, which still resonates with shoppers nationwide—especially on the West Coast, where Century 21 has little presence. “Loehmann’s continues to rank high as a retail destination that consumers recall, admire [and] want to patronize,” Mentzer told The New York Post, emphasizing the brand’s nostalgic value.

Loehmann’s, founded in Brooklyn in 1921 by Frieda Loehmann and her son Charles, once operated over 100 stores nationwide and was a favorite among bargain-hunting fashion lovers. Its “Back Room” became a legendary destination for shoppers willing to dig through racks of designer goods for a deal.

At its peak, Loehmann’s even occupied the building that had previously housed the original Barneys New York location on Seventh Avenue and West 17th Street, cementing its place in the pantheon of high-low New York retailing.

But as The New York Post chronicled over the years, Loehmann’s—and fellow discount darlings like Filene’s Basement, Daffy’s, and Syms—fell victim to a brutal combination of overexpansion, changing consumer behavior, and fierce competition from deep-pocketed players like TJ Maxx and Ross Stores. The final blow came in 2014, when it closed its last 39 stores amid a challenging retail climate.

Still, the core appeal of Loehmann’s—what retail insiders call the “treasure hunt experience”—hasn’t faded, and Century 21 appears determined to recapture that magic, albeit online. “Product is definitely available,” Mentzer told The New York Post, noting that global supply chains and trade disputes, including the ongoing U.S.-China tariff war, haven’t impeded the relaunch plans.

Interestingly, this modern resurrection is being framed as a strategic re-entry into a market where, as traditional retailers contract, nimble legacy brands like Loehmann’s may find new life online. “As other retailers contract,” Mentzer said, “this is the time for a re-imagined Loehmann’s.”

Whether that gamble pays off remains to be seen. But for loyal fans who still miss the thrill of uncovering a $1,200 designer coat for $199 in the Back Room, The New York Post reported that the comeback they’ve long awaited may finally be on the horizon—just one click away.