Business

Corridor Gordmans locations soon will close

Shoppers check out the grand opening of Gordmans 4601 First Ave. SE in Cedar Rapids in 2006.
Shoppers check out the grand opening of Gordmans 4601 First Ave. SE in Cedar Rapids in 2006.

Multiple Gordmans locations, including in the Corridor, are slated to close soon.

The Gordmans locations at 4601 First Ave. SE in Cedar Rapids and 2515 Corridor Way in Coralville both will close in the near future, a company spokesperson said.

A sign at the Gordmans store in Cedar Rapids on Saturday confirmed the closure.

Other Iowa stores, including two in Des Moines and one in Sioux City, also will shut their doors, according to news reports.

The off-price department store chain was founded in 1915 in Omaha, Neb., with products including clothing, furniture, homewares and toys sold out of 158 locations as of mid-January 2020.

Stage Stores paid $35 million to $40 million to buy leases to at least 50 Gordmans stores, inventory at 57 stores, trademarks and other assets in April 2017, the month after Gordmans filed for Chapter 11 bankruptcy.

The parent company in September announced plans to close approximately 40 stores during fiscal 2020, amid a conversion of its remaining specialty department stores — including Bealls, Goody’s, Palais Royal, Peebles and Stage locations — to off-price.

Stage Stores expects to be operating approximately 700 predominantly small-market Gordmans locations by the third quarter of fiscal 2020, it said last fall.

Stage Stores itself now is preparing for a financial restructuring that could include either itself filing for Chapter 11 or an out-of-court debt restructuring process, in connection with losses at its department stores, the Wall Street Journal reported on Feb. 11.

Comments: (319) 398-8366; thomas.friestad@thegazette.com

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