NY retailer seeks advice on turnaround-report

NEW YORK June 15 (Reuters) - Designer goods discount retailer Loehmann's Inc, whose parent is an investment arm of Dubai World, has hired three firms to advise it on a turnaround, Bloomberg News reported on Tuesday.

Photo: www.loehmanns.com

The report, citing unidentified people with knowledge of the situation, said the three firms were AlixPartners LLP, Perella Weinberg Partners and Clear Thinking Group LLC.

A representative of Loehmann's could not immediately be reached to comment.

The New York retailer's parent is Istithmar World PJSC, an investment arm of state-owned holding company Dubai World, which reached an agreement last month with its main creditor group to restructure more than $20 billion in debt, the report said.

Loehmann's sales of such brands as Michael Kors, Calvin Klein and Donna Karan declined in the U.S. economic slump. The report said that in a letter to vendors, Istithmar granted Loehmann's a three-year extension of an $8 million standby letter of credit last year.

(Reporting by Grant McCool; Editing by Steve Orlofsky)