The Loehmann's Model Finally Goes Out of Style

Loehmann's Inc. is headed into bankruptcy for the third time. I'm a big fan of using bankruptcy to get back on your feet, but when you're filing for the third time in 15 years, it may be that the universe is trying to tell you something -- like "your business model doesn't work anymore."

Loehmann's used to have a great business model. In the 1980s, when I was in high school, I would go there with my mom and her friend Joyce. You'd go through the racks until you were literally staggering under the weight of clothes you wanted to try on, and then you'd inch back into the dressing rooms -- or I should say "dressing room," a cavernous space where you had to try on clothes in full sight of everyone else. For a teenage girl, this was somewhat traumatic. But such bargains!