Designer apparel department store Loehmann's has set a plan to exit Chapter 11 bankruptcy protection by February 18, 2011.  Loehmann's operates 60 stores across the country and filed for bankruptcy protection in November.

Part of the company's Chapter 11 exit plan is to sell $25 million of convertible preferred stock.  Amy Rosenberg, a company spokesperson, said of the filing, "The restructuring plan will substantially reduce the company's outstanding debt by approximately $110 million and recapitalize its balance sheet.  Loehmann's continues normal operations throughout the reorganization".  Company executives have not said if they will need to close any Loehmann's stores.

Chapter 11 bankruptcy is a form of business bankruptcy that allows a company to reorganize the business and pay off debts while continuing operations.  Contact the Arizona bankruptcy lawyers of Hamon Law Office, LLC at 480-829-0494 today to set up an appointment to discuss the benefits of filing for Chapter 11 bankruptcy protection.