Oh no not another store closing!! Gordmans Store is joining the ranks of numerous stores that are closing their doors, due to sluggish sales and unable to compete with online retailers.
Gordmans Stores Inc has filed bankruptcy and will begin liquidating inventory and assets of its retail stores and distribution centers.
Beginning in 2014 sales and growth began to slow down. Gordmans, which operates more than 100 stores in 22 states and employs about 5,100 people is suffering from sluggish sales and competition with online retailers. The company announced job cuts in January. Around the beginning of March, vendors began to refuse to ship new inventory due to the Companys financial problems.
Gordmans Stores is a century old discount department store that was founded around 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 car broke down in Omaha en route to California. Gordman met Richman’s daughter while he was waiting for his car to be repaired and decided to stick around. Miss Richman and Gordman later married.
Gordmans will continue “business as usual” for the time being.
The company listed total debt of $131 million.