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Gordmans

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Gordmans
Company typeSubsidiary
IndustryRetail
Founded1915
DefunctAugust 29, 2020
FateBankruptcy
HeadquartersHouston, Texas
Number of locations
157[1] (September, 2019)
ProductsClothing, footwear, bedding, furniture, jewelry, beauty products, small kitchen appliances and housewares
OwnerStage Stores
WebsiteArchived official website at the Wayback Machine (archive index)
Footnotes / references
[2]

Gordmans was a chain of Midwestern off-price department stores founded in Omaha, Nebraska. The chain has been owned by Stage Stores since March 2017. In 2019, Stage Stores began converting other retail chains it owned into Gordmans stores, with the goal of having 700 Gordmans stores in 42 states by the end of 2020.[3] In May 2020, Stage Stores filed for Chapter 11 bankruptcy and began liquidating its stores.[4] Although a buyer for Stage could have prevent liquidation, Stage later announced that they would proceed with going out of business sales at all locations.[5]

History

Richman-Gordman

A Gordmans store in Nampa, Idaho

The company's origins date back to the early 20th century when Sam Richman opened a small clothing store in Omaha in 1915. Richman's Outfitters to the Family occupied a small storefront at 16th and Chicago in downtown Omaha. Dan Gordman joined Richman as a full partner in the business and married his daughter Esther. After several years, the business grew to occupy the entire building at 16th and Chicago. In 1948, a second store was opened in South Omaha, Nebraska and Gordman purchased Richman's remaining interest in the company, and changed the name to Richman Gordman.[6]

During the 1960s, Gordman's sons and nephew joined the business and positioned the company for more aggressive expansion. In the early 1970s, the company expanded beyond Nebraska. Richman Gordman opened two stores in Des Moines, Iowa followed by another location in Topeka, Kansas. Its 10th store opened in Grand Island, Nebraska in 1974. Gordman was among the first to incorporate central checkouts, shopping carts, and self-service shoes to Omaha and was also one of the first stores to be open on Sundays.[citation needed]

1/2 Price Store and Gordmans

1/2 Price Store location in Independence, Missouri, later a now closed Gordmans location.

In 1975, Gordman opened a small test store in South Omaha at 25th and L Streets named the 1/2 Price Store. The concept was to sell Richman Gordman merchandise at half price. This led to the opening of six more 1/2 Price Stores in the 1970s; a separate corporate structure was built to accommodate the growing business. By the company's 75th anniversary in 1990, it operated 16 1/2 Price Store off-price department stores and 16 Richman Gordman department stores. In 1992, however, Richman Gordman filed for bankruptcy protection, and all of its department stores closed. The off-price department store division became the company's sole focus after it emerged from bankruptcy under the Richman Gordman 1/2 Price Stores name in 1993.

By 1996, all 1/2 Price Stores were converted into the Gordmans brand, though the name would hang around for several more years. The company decided to develop a new prototype store and attempted to improve the store's presentation. The first two Gordmans stores opened in Tulsa, Oklahoma in August 1999.

Sun Capital Partners bought the company in 2008. It was taken public again in 2010 with Sun continuing to hold a majority stake.

Bankruptcy

On March 6, 2017, Bloomberg reported that Gordmans was reportedly preparing to file for bankruptcy.[7] On March 13, 2017, Bloomberg announced that Gordmans had indeed filed for bankruptcy in Nebraska (In re Gordmans Stores Inc., 17-80304, U.S. Bankruptcy Court, District of Nebraska (Omaha)) with a liquidation deal struck with Tiger and Great American.[8]

Stage Stores

Through the bankruptcy, Stage Stores bought 48 Gordmans stores in March 2017, along with one distribution center, the Gordmans name, and all intellectual property.[9]

Under the direction of Stage Stores, Gordmans began to transition away from the specialty department store business model, moving the brand to the off-price retail sector, more resembling stores like T.J. Maxx, Ross, and Burlington. As part of expanding the brand, Stage Stores opening their first new Gordmans store in Rosenberg, Texas in March, 2018.[10]

In March 2019, Stage announced that by mid-2020 they planned to convert at least 220 of their current department stores, including those of other brand names, into Gordmans off-price stores. CEO Michael Glazer cited the high sales increases in the locations that were converted in 2018 as the deciding factor in the decision.[11]

In September 2019, Stage Stores announced that they planned to completely exit the department store market, moving completely to the off-price model, converting all other stores brands to the Gordmans brand, and operating approximately 700 Gordmans stores by the third quarter of fiscal 2020 (August-October).[3] But in May 2020, Stage Stores filed for Chapter 11 bankruptcy due to the COVID-19 pandemic, even though the ongoing conversions had resulted in same-store sales rising more than 17% in the November-January fiscal quarter. [4] All Gordmans stores were closed on September 27, 2020.

References

  1. ^ Gordmans (2020-08-05). "Gordmans Department Stores Locations". www.gordmans.com.
  2. ^ "Gordmans Stores, Inc". Retrieved 2017-02-28.
  3. ^ a b "Stage Stores Announces Total Company Conversion to Off-Price". www.businesswire.com. 2019-09-17. Retrieved 2020-05-12.
  4. ^ a b Bhattarai, Abha (May 11, 2020). "Stage Stores files for bankruptcy, says it will liquidate more than 700 stores if it can't find a buyer". Philadelphia Inquirer. Retrieved 2020-05-12.
  5. ^ "Stage Stores Starts Going-Out-of-Business Sales | SGB Media Online". sgbonline.com.
  6. ^ "Gordmans". Gordmans. Retrieved 2018-07-18.
  7. ^ Coleman-Lochner, Lauren; Klein, Jodi Xu (March 6, 2017). "Gordmans Stores Is Said to Prepare for Bankruptcy Filing". www.bloomberg.com. Retrieved 2018-07-18.
  8. ^ Dunn, Andrew (March 13, 2017). "Gordmans Stores Files for Bankruptcy With Plan to Liquidate". Bloomberg.com. Retrieved 2018-07-18.
  9. ^ "Some Gordmans department stores bought by rival, will remain open". The Denver Post. Associated Press. 2017-03-30. Retrieved 2018-07-18.
  10. ^ Takahashi, Paul (22 March 2018). "Stage Stores shopping for bargain hunters in Rosenberg". HoustonChronicle.com.
  11. ^ Ryan, Tom (March 12, 2019). "Stage Stores converts to an off-price future – RetailWire". RetailWire. Retrieved 2020-05-12.
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