Retailer Gordmans files for bankruptcy

Omaha, Neb.-based retailer Gordmans, which operates 106 stores in 22 states, including stores in Cedar Rapids, Coralville and Waterloo, filed for Chapter 11 bankruptcy protection on Monday.

A statement on the company's website said it has signed agreements with Tiger Capital Group LLC and Great American Group LLC to assist with its sale and liquidation of inventory and other assets of Gordmans' retail stores and distribution centers.

A Chapter 11 bankruptcy filing allows a company to continue operating and develop a plan to repay creditors.

Gordmans employs about 1,600 people companywide.

Company president and CEO Andy Hall said Gordmans locations will remain open during the bankruptcy process.

'Until further notice, all Gordmans stores are operating as usual without interruption,” Hall said. 'The management team and all of our associates remain committed to continuing to provide great merchandise and service to our guests during this process.”

Gordmans announcement is another indication of the changing retail landscape as many chains including Macy's, Sears and J.C. Penney have had to close stores in recent years and restructure operations to maintain profitability. Brick-and-mortar retailers have faced changing consumer shopping habits driven by online shopping.

Gordmans was started by Sam Richman, a Russian immigrant, with one location in Omaha, Nebraska in 1915. He was later joined by Dan Gordman, a former Bloomingdales executive who eventually married Richman's daughter Esther.

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.

In 1975 the company opened another chain of stores called Half Price Stores, which it operated in conjunction with its Richman Gordman stores. By 2000, all 32 locations were renamed Gordmans.

Sun Capital Partners purchased Gordmans in September 2008. The company's first initial public offering took place in 2010 and another followed in 2012.

Gordmans had posted losses in five of its last six quarters. The company did not give a time frame for the liquidation sale.