Omaha-based retailer Gordmans announced Monday that it has filed for chapter 11 bankruptcy and will liquidate all 106 of its stores, which include two in Colorado Springs.
In the announcement, officials from the company stated that Gordmans Stores Inc. had “filed for voluntary relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Nebraska.”
The announcement went on to state that the retailer has entered into an agreement with Tiger Capital Group LLC and Great American Group LLC to oversee the liquidation of inventory and assets at all of the company’s retail stores and distributions centers.
Media spokesperson Joan Lukas, who owns and operates Omaha-based PR firm Lukas Partners, declined to comment on news of the store’s chapter 11 filing, but said that “the stores are all still open.” There has been no indication of how long that may remain the case, although the announcement did state that “the ultimate outcome of the filing and liquidation sale is subject to the oversight and approval of the Bankruptcy Court.”
“Until further notice, all Gordmans stores are operating as usual without interruption,” President and CEO Andy Hall said in the announcement. “The management team and all of our associates remain committed to continuing to provide great merchandise and service to our guests during this process.”
According to Lukas, the two Gordmans stores in Colorado Springs — located in the Broadmoor Town Center (1972 Southgate Road) and Chapel Hills Mall (1680 Briargate Blvd.) — employ a total of 92 workers, while its five stores in the Denver area employ 171.
According to Bloomberg reports, the company has posted losses in five of the six past consecutive quarters and lists a total debt of $131 million in its chapter 11 filing.
Gordmans was founded in Omaha in 1915 and continued to open new retail locations until 2015, according to its website.