Iconic 102 year old retailer ready to file for bankruptcy, 100 stores to close?
The retail apocalypse is upon us. According to this Omaha report, Gordmans is ready to file for Bankruptcy….100 stores to close?
Gordmans is reportedly going to join the list of bricks-and-mortar retailers filing for bankruptcy this year.
The department store chain, founded in Omaha in 1915, is preparing to file as early as this month, Bloomberg News reported Monday, citing people familiar with the matter who asked not to be identified.
A Gordmans spokeswoman told The World-Herald that the company wouldn’t comment on “rumor or speculation.”
The retailer has reported falling sales for years. It recruited a new president and chief executive, Andy Hall, to replace Jeff Gordman in 2014. The company had seen some improvement under Hall, who added new merchandise to stores, launched a companywide cost-cutting initiative and halted what retailing analysts had deemed the chain’s excessive use of coupons and sales.
The company reported its first positive same-store sales figure, which measures sales at stores open at least a year, in three years in the third quarter of 2015 under Hall’s leadership. Sales stagnated or declined through 2016.
Gordmans stock has been trading below $1 since September of last year. In November, the company received a “deficiency letter” from the Nasdaq market, on which the stock trades, saying that if the stock doesn’t rise above the $1-per-share requirement by May 1, it will be delisted from the exchange.
At the time, James Brown, the company’s chief financial officer, told The World-Herald that it was only a mater of time before the stock would rise organically once the company reported improved operations and earnings.
The company employed 350 people at its Aksarben Village headquarters as of November; it laid off an undisclosed number of those employees in January, blaming a “current sluggish retail environment.”