Gordmans files for bankruptcy protection
All 106 stores across nation to close, including 2 in ABQ
OMAHA, Neb. — Department store operator Gordmans became the latest retail industry casualty Monday, announcing it had filed for bankruptcy protection and plans to liquidate the inventory of its 106 discount stores.
Gordmans opened its first of two Albuquerque locations in July 2013 at Cottonwood Corners on N.M. 528. Two months later, it opened its second location at Coronado mall. Gordman’s has 69 employees at the two stores, according to Joan Lukas of Lukas Partners, who is handling Gordman’s media relations.
The Omaha, Neb.-based company, which filed for Chapter 11 bankruptcy protection, had been working to reduce its expenses over the past several months and laid off an undisclosed number of workers at its headquarters in January because of what it called the “sluggish retail environment.”
Gordmans did not give a time frame for the liquidation sale. “Until further notice, all Gordmans stores are operating as usual without interruption,” says Gordmans President and CEO, Andy Hall, The retailer employs more than 5,000 people at its stores in 22 states.
Gordmans posted losses in five of its last six quarters. And in its mostrecent quarter, it reported a 9.4 percent drop in same-store sales last year.
Chief Financial Officer James B. Brown said in documents filed in court that the company’s sales declined because retail traffic slowed and less than 1 percent of Gordmans sales were made online in the past year.
Gordmans stock has been trading below $1 since last fall. It fell Monday from 12 cents to 7 cents after the bankruptcy announcement.
The company estimated its debts total between $100 million and $500 million.