Stage Stores to Acquire About Half of Gordmans’ Stores
Houston-based Stage Stores announced yesterday it won a bid to acquire about half of Gordmans Stores Inc.’s assets through a bankruptcy auction. Under the terms of the deal, a subsidiary of Stage Stores plans to acquire between 50 and 57 Gordmans store leases, including all of the inventory, furniture, fixtures, equipment and other assets at those locations. The deal also includes Gordmans’ trademarks and other intellectual property, as well as the right to assume the lease for a distribution center. Financial terms weren't disclosed, but more details are expected once the deal closes. The subsidiary will maintain the Gordmans brand and retain a “significant number of Gordmans employees,” Michael Glazer, president and CEO of Stage Stores, said in a press release.
Total Retail's Take: Stage Stores is using this acquisition as an opportunity to expand its reach into the Midwest, where the large majority of Gordmans’ stores are located. The move likely comes without significant risk for Stage Stores, as most analysts believe the retailer was able to acquire the Gordmans locations at a value price and without having to take on too much debit. Stage Stores is looking to grow its brand following a disappointing 2016, when sales decreased, and it appears one of the ways it will do so is through acquisition.