Gordmans announced Monday it filed for bankruptcy and 3 News Now is learning of plans of lay off about 450 people in the distribution center and the corporate office in Nebraska.
Gordmans has filed documents with the State of Nebraska pursuant to the Worker Adjustment and Retraining Notification Act, or WARN Act. The U.S. requires most employers with 100 or more workers to provide a two months heads up of plant closings and mass layoffs of employees.
The act is meant to protect employees and their families.
Noddle Companies owns the space in Aksarben Village the Gordmans headquarters currently occupies. Jay Noddle told 3 News Now on Monday, while he has a great relationship with Gordmans, it won't take long for a new company to take its place.
"It would be really unfortunate for their workforce for their colleagues if they downsized or left Asksarben Village but I don't see this as impactful on Aksarben Village in any way," Noddle said.
Because the bankruptcy was filed under Chapter 11, there is still the potential a buyer could step in and save the chain. According to court filings, dozens of potential bidders have looked at Gordman's books - but no buyers have emerged.
With 106 stores across the U.S. the retailer has more than 5,000 employees.
While the bankruptcy process plays out, according to a statement from Gordmans CEO Andy Hall says “the stores will operate as usual without interruption.”
