Gordmans files for bankruptcy, plans to liquidate

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Gordmans files for bankruptcy, plans to liquidate

The retailer stressed that the liquidation is pending a bankruptcy hearing, but liquidation typically leads to the closure of stores.

A statement released by Gordmans stated that "until further notice, all Gordmans stores are operating as usual without interruption". According to its website, Gordmans operates 106 stores in 22 states.

Sun Capital Partners purchased Gordmans in September 2008. The impact has been both felt with national chains, like Macy', as well as regional department and retail stores. Gordman met Richman's daughter while he was waiting for his vehicle to be repaired and chose to stick around.

The apparel and home decor chain was founded more than 100 years ago, but it has been losing money in recent quarters.

However, Bloomberg reported last week that those increases didn't last, noting that sales began to slow in 2014. The company announced job cuts in January, citing the "sluggish retail environment".

The company hasn't listed a time frame yet for when it plans to close its stores and liquidate their inventory. After entertaining various offers, the company concluded that its best recourse was liquidation.

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