You mean loungewear for sleeping and home, not running errands or exercising (i.e., gear), right? Because to my recollection, ATL offered sweat pants which isn't the same as loungewear.
If you're looking for something you can sleep in, try GAP. I'm only 5'0" and I wear the Gap XS supersoft pj's with no hemming necessary. The are perfect fit/length for me. Even the Small's aren't all that bad. (This is actually on my xmas wishlist, because our dryer mangled one of my favorite sleep camis).
If you're looking for gear (something you can wear outside the house), I agree it's disheartening ATL has nothing right now. Try:
- Ralph Lauren petites - for velour matching sweat suits that aren't too terribly bad and do have some stylishness (as stylish as you can get with velour sweat suits)
- Sutton studio petites at Bloomie's (never ordered them myself, so can't vouch... but that's what I might try)
- Victoria's secret (I *think* they have short lengths... if not, try on in the store first)
- LuLu Lemon - for yoga gear. They'll do the hemming for free.
- New Balance - for running gear.