Gordman’s files bankruptcy; liquidating stores

Posted at 4:19 PM, Mar 14, 2017

OMAHA, Neb. (AP/FOX 17)- The discount store chain Gordman’s announced Monday they will be filing for bankruptcy, and liquidating their stores

The Omaha, Neb.-based chain has not given a time frame for closing its stores, but did say that it’s entered into an agreement with Tiger Capital Group LLC and Great American Group LLC to liquidate the inventory and other assets of its retail stores and distribution centers.

In a statement, Gordmans president and CEO Andy Hall said, “Until further notice, all Gordmans stores are operating as usual without interruption.”

Gordmans has posted losses in five of the past six quarters, and its stock price had fallen to around a dime a share.

Private equity firm Sun Capital Partners bought the business in 2008 and took it public two years later. Growth slowed in 2014, and losses began to mount. Same-store sales fell more than 9 percent in the most recently reported quarter. The company announced job cuts in January, citing the “sluggish retail environment.”

Gordman’s has stores in Wyoming, Norton Shores, Lansing and Saginaw. A notice on the Gordman’s website says the stores are open for business as usual. The Norton Shores store opened about three years ago.