Published: Tue, March 14, 2017
Money | By Oscar Reynolds

Gordmans department store chain files for bankruptcy

Gordmans department store chain files for bankruptcy

Gordmans also announced an arrangement for the sale and liquidation of the inventory and other assets of Gordmans' retail stores and distribution centers with Tiger Capital Group, LLC and Great American Group, LLC.

For the time being, the chain will operate "as usual without interruption", the company said in a release.

It listed a $131 million debt in its Chapter 11 papers filed Monday in federal court.

Gordmans has six stores in the St. Louis metropolitan area: St. Charles, O'Fallon, Chesterfield, Fenton, Arnold, and Fairview Heights, Illinois.

Brown said in documents filed in court that the company's sales declined because retail traffic slowed.

The apparel and home decor chain was founded more than 100 years ago, but it has been losing money in recent quarters. It fell Monday from 12 cents to 7 cents after the bankruptcy announcement. It employs about 5,000 people at its stores in 22 states.

Private equity firm Sun Capital bought the company in 2008 and took it public in 2010.

A business partnership between Richman and Gordman led to the opening of Richman Gordman stores around Nebraska and eventually the company expanded into Iowa and Kansas.

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