Jin Lee, Bloomberg / Getty Images

Spirits must be a bit "lo" at Loehmann's.

The retailer has filed a Chapter 11 petition after going bankrupt for the second time in its history, the New York Post reports.

While its Dubai-based owner, Istithmar, fights to maintain control of the clothing chain, financial experts blame the money woes on overexpansion, according to the paper.

"They took (Loehmann's) to California and Florida -- the last places that brand should have been going to," retail consultant Stevan Buxbaum of the Buxbaum Group told the paper.

A new restructuring plan will reportedly see Istithmar spending $25 million for a 49 percent stake in the reorganized company, but insiders say the retailer may not be able to fight off competitors.

"Loehmann's used to attract the upmarket customer and they no longer are," Mike Tesler of Retail Concepts told the Post.

"Those savvy customers are now going to TJ Maxx and Gilt Groupe."

The embattled chain, which previously went bankrupt in 1999, also reportedly counts Urban Outfitters and Juicy Couture among its creditors.

Yikes. Does somebody need a hug?

In other retail news, Google is set to launch a virtual shopping site tomorrow.