Update: Gordmans Files for Chapter 11; Stores To Close
They are not as well known as Sears, Kmart or J.C. Penny, but Gordmans, which has been around the Midwest since 1915 and has stores in Burnsville, Mankato and Woodbury, has reportedly filed for bankruptcy and will liquidate stores and distribution centers, closing down the business.
Tiger Capital Group and Great American Group has been given the tasks of the sale and liquidation of the inventory and other assets of Gordmans’ retail stores and distribution centers, subject to court approval or a better offer. For right now it's business as usual.
According to Bloomberg, their shares have fallen 75 percent in the past year. Their stock has fallen to under $1 per share and they need to turn things around by May or they are in danger of being delisted by the Nasdaq Stock Market.
The chain got its start when Russian immigrant Sam Richman teamed up with former Bloomingdale's executive Dan Gordman. The chain was named Richman Gordman, but became Gordmans in 2000. According to Bloomberg, the chain has $85 million in debt, with most of it due in 2020.
No word yet on when the closing dates for the stores will be.