Gordmans is the latest victim of the U.S. department store demise.
On Tuesday, the Nebraska-based retailer filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Nebraska.
Gordmans also entered into an agreement with Tiger Capital Group and Great American Group, “for the sale in liquidation of the inventory and other assets of Gordmans’ retail stores and distribution centers,” subject to Bankruptcy Court approval of another transaction. The Bankruptcy Court will oversee the outcome of the filing and liquidation sale.
“Until further notice, all Gordmans stores are operating as usual without interruption,” said Gordmans CEO and president Andy Hall. “The management team and all of our associates remain committed to continuing to provide great merchandise and service to our guests during this process.”
Gordmans’ also alerted consumers that it will still operate its brick-and-mortar locations and website throughout the Chapter 11 process.
Gordmans’ bankruptcy filing follows its recent financial troubles. In January, Gordmans trimmed its non-store positions. The retailer’s recent earnings also indicated a decrease in sales and profit. For the third quarter ended Oct. 29, 2016, Gordmans experienced a 6.7% decrease in net sales to $143.5 million and comparable store sales also dropped by 9.3%. Third quarter gross profit also decreased to 43.8% of net sales to $62.9 million from 44.4% in 2015.
Founded in 1915, Gordmans currently operates 106 stores across 22 states and offers up to 60 percent off on name brand apparel, accessories and footwear. In 2008, the retailer was sold to private equity firm Sun Capital Partners, which has managed Gordmans for the past nine years. Gordmans has been recognized by many publications, including Forbes, for its ethical business practices and top earnings growth.
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