Gordmans Stores Preparing for Bankruptcy Filing
Gordmans Stores Inc., a Midwestern department store chain founded more than a century ago, is preparing to file for bankruptcy, according to people familiar with the matter. The filing could come as soon as this month, said the people, who asked not to be identified because the process isn’t public. Shares of the Omaha, Nebraska-based company have fallen more than 75 percent in the past year, battered by losses in five of the last six quarters.
Total Retail's Take: The carnage continues for department store chains, with Gordmans the latest victim. We all know by now that Macy's, J.C. Penney, Kohl's and Sears will all be closing stores this year, and it appears Gordmans will be joining them. The retailer reported same-stores sales fell more than 9 percent in the most recently reported quarter, and also announced job cuts in January, citing the “sluggish retail environment.” A decrease in mall traffic, where most department stores are located, and an increase in online shopping have combined to spell doom for many traditional brick-and-mortar retailers. The question now is can department stores survive in this new retail environment, and if so, how will they have to change themselves?
