Monday, 29 May, 2017

Gordmans files for bankruptcy

Source Gordman's website Source Gordman's website
Mae Harvey | 14 March, 2017, 00:46

The chain has an agreement with Tiger Capital Group, LLC and Great American Group, LLC for the firms to liquidate inventory and other assets across all retail stores and distribution centers.

In a statement, Gordmans president and CEO said until further notice all stores will operate as usual. "These trends have directly affected the Debtors' sales and operations".

Gordmans employs about 1,600 people companywide.

According to an article in the Omaha World Herald Monday, the bankruptcy filing may offer faint hope for keeping the stores in business.

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Gordmans traces its roots to 1915, when Russian immigrant Sam Richman opened a clothing shop in Omaha. He later teamed up with a former Bloomingdale's executive, Dan Gordman, whose auto broke down in Omaha en route to California. The two later married. Growth slowed in 2014, and losses began to mount.

The apparel and home decor chain was founded more than 100 years ago, but it has been losing money in recent quarters.

In late January, the company announced a series of layoffs, not saying at the time how many positions were being cut. The St. Paul-based outdoor retailer said it plans to shutter several of its stores, including its store Woodbury location.

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