Gordmans to Close ALL Stores
Last week, we told you it appeared a bankruptcy filing was imminent. For shoppers, it's much worse than that. Gordmans Stores Inc. officially filed for bankruptcy protection on Monday, and have announced they will be liquidating their stores.
In papers filed Monday in federal court in Nebraska, Gordmans listed total debt of more than $130 million. The company, based and founded in Omaha, Nebraska in 1915, has nine Iowa locations including four in eastern Iowa. They're in Cedar Rapids, Coralville, Waterloo, and Davenport (there are also two stores in Des Moines, one in West Des Moines, Council Bluffs, and Sioux City). The company has locations in 22 states, with more than 100 total stores and over 5,000 employees. The company's website has this message:
"YES, WE'RE OPEN!
It’s business as usual in our stores and Gordmans.com! In light of our recent decision to file Chapter 11 bankruptcy, rest assured that you’ll still find the same great values, styles and exceptional service. Our doors are open – and spring is waiting!"
All stores will remain open, but only for the time being. According to Omaha.com, Gordmans is holding out a little hope of staying open, but only if a buyer purchases and operates the stores. That looks unlikely, so the U.S. Bankruptcy Court in Omaha is working out a plan that would allow the retailer to liquidate store inventory, as well as assets, to pay off the $130 million the company owes. How long that will take is anyone's guess but for now, the status quo remains. However a big sale appears imminent, and this time that's very, very bad news.