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Retailer Gordmans files bankruptcy, plans to liquidate its stores

Posted: 11:05 AM, Mar 13, 2017
Updated: 2017-03-13 18:05:58Z

Gordmans announced on Monday that it is filing Chapter 11 bankruptcy and plans to liquidate its remaining 106 stores spread across 22 states. 

The retailer stressed that the liquidation is pending a bankruptcy hearing, but liquidation typically leads to the closure of stores. Until then, all 106 stores will remain open as usual. 

"Until further notice, all Gordmans stores are operating as usual without interruption," said Andy Hall, president and chief executive officer of Gordmans. "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 has seen its stock decrease dramatically in recent years. In 2012, it's stock traded for $22 per share. On Monday, its stock has dropped to 7 cents. 

Gordmans' potential fate is part of a national trend of retailers struggling as foot traffic in malls continues to decline. Larger retailers such as JC Penney and Macy's are planning on closing stores in 2017. 

Founded in 1915 and based in Omaha, Nebraska, Gordmans sells apparel and footwear for men, women and children, as well as accessories, home décor, gifts, designer fragrances, fashion jewelry, bedding and bath, accent furniture and toys.