Stage stores acquires several assets from Gordmans discount department store chain

By

Rebecca Taras

Published
Apr 4, 2017

As store closures continue to threaten the future of malls and retailers like Banana Republic nationwide, Stage Stores, Inc.—a direct-to-consumer company that operates 798 specialty department stores in 38 states under brands like Goody’s and Palais Royal—announced it would acquire several assets from Gordmans Stores, Inc. through a bankruptcy auction. Gordmans is a 100-year old discount department store chain with 105 stores in 22 states.

The deal was comprised of 57 store leases (to include all existing inventory, furniture and equipment) in the Midwest area, a distribution center and all trademarks and intellectual property previously owned by Gordmans.

Stage Stores doesn’t plan on changing Gordmans existing business model and hopes to capitalize on the off-price home and gifts market targeted towards a younger consumer. “Gordmans’ stores are a natural complement to Stage, bringing beneficial diversification and scale to our business, while creating synergies through the use of our current infrastructure,” said Michael Glazer, president and chief executive officer of Stage. “The Gordmans business model offers great potential and, without the burden of a high level of debt, unprofitable locations and an oversized infrastructure.”

The deal is officially slated to close during Stage’s first fiscal quarter of 2017.