Gordmans files for bankruptcy
Gordmans is the latest in a string of retailers to file Chapter 11. The discount retailer filed a voluntary petition for relief under Chapter 11 on Monday morning. As of right now, the department store plans to liquidate its assets.
Andy Hall, president and chief executive officer of Gordmans told the press in an official statement, "Until further notice, all Gordmans stores are operating as usual without interruption. The management team and all of our associates remain committed to continuing to provide great merchandise and service to our guests during this process."
Tiger Capital LLC and Great American Group LLC will partner with Gordmans to liquidate inventory and other assets of Gordmans retail locations and distribution centers.
The company listed over $131 million in debt. Gordmans has been fighting bankruptcy the last few months, announcing at the end of January its plan to consolidate its workforce.
The Nebraska-based department store carries apparel and home decor items at discount prices. Gordman’s operates 106 stores across 22 states. Over 5,100 are employed by the discount retail chain.
Gordmans is the latest retailer to take a serious hit as mall traffic continues to decline. BCBG filed bankruptcy just three weeks ago, while mall-based retailer Wet Seal filed just before that. MC Sports, American Apparel, and The Limited are just a few stores that have filed in the last few months.
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