Century-old discount department store chain Gordmans Stores, Inc., filed for Chapter 11 bankruptcy Monday in U.S. Bankruptcy Court in Omaha.
It’s one of several national retailers by slumping sales and profit declines. The bankruptcy process would include a plan to sell inventory and assets for a price that works for creditors who are owed about $130 million.
"The stores and the headquarters are likely to close and the name Gordmans is likely to go away," said Omaha World Herald Business Editor Brad Davis.
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.”
Gordmans is headquartered at Aksarben Village, leased from Noddle Companies. President and CEO Jay Noddle says he maintains a close relationship with the business.
"We have a great relationship with them and today its business as usual," Noddle said.
Noddle says the area is attractive to other businesses in the event Gordmans vacates the space.
"I can't imagine we'd have a hard time replacing Gordmans tenants with someone else," Noddle said.