UPDATE 2-Loehmann's names permanent CEO
* New CEO says might try to expand the chain
* Steven Newman, 51, will also join the board
* Loehmann's emerged from bankruptcy in March (Adds details on ownership, executive changes)
NEW YORK, June 7 (Reuters) - Off-price department store chain Loehmann's Holdings Inc named a new chief executive who said he might try to expand the chain.
Loehmann's, which operates 40 stores offering designer clothing at prices far below those of department stores, last year filed for Chapter 11 bankruptcy protection under the weight of a large debt load. It emerged in March.
The company, based in New York City, said Steven Newman, would take Loehmann's reins in the second week of June. Joe Melvin, who served as interim CEO since Loehmann's exited bankruptcy, will resume his duties as chief operating officer.
Newman, 51, most recently served as president of women's retailer Ashley Stewart. Newman will also join Loehmann's board.
Newman in a statement called Loehmann's a "storied" retailer and said he wanted to "expand the franchise."
In April, Loehmann's also named a new CFO.
As part of its restructuring plan to exit bankruptcy, Loehmann's owner, Dubai World unit [DBWLD.UL] Istithmar, and Whippoorwill Associates, now also an owner, backstopped a rights offering to invest $25 million in the company. (Reporting by Phil Wahba, editing by Dave Zimmerman and Matthew Lewis)