GLASGOW – Gordmans, a discount store the Barren River Plaza shopping center, is closing its doors due to its parent company, Stage Stores, Inc., volunteering to file bankruptcy.
Angie Michael, an assistant manager for the Glasgow store location, confirmed the bankruptcy earlier this week and said it isn’t just the Glasgow store.
“It is the whole company,” she said.
Michael did not know how long the Glasgow store will remain open.
A press release published on Gordmans’ website said Stage Stores, Inc. filed voluntary petitions under Chapter 11 of the Bankruptcy Code in U.S. Bankruptcy Court for the Southern District of Texas, Houston Division on May 10.
Chapter 11 of the U.S. Bankruptcy Code generally means a company is seeking reorganization and will typically propose a plan to keep its business alive and pay creditors over time, according to the U.S. Courts website.
While undergoing bankruptcy, State Stores, Inc will also be soliciting bids for the sale of the business or any of its assets and will initiate an “orderly wind-down of operations,” the press release said.
A March 27 press release posted on the company’s website announced that the company would be temporarily closing all 738 of its stores in order to reduce costs and preserve liability in response to the “increasing challenging market conditions and the impact of the COVID-19 pandemic.”
The company anticipated reopening 557 of its stores on May 15 and another 67 on May 28, with the balance of the stores reopening Thursday after being shut down due to the COVID-19 pandemic.
Michael Glazer, president and chief executive officer, said in the press release: “This is a very difficult announcement and it was a decision that we reached only after exhausting every possible alternative. Over the last several months, we had been taking significant steps to attempt to strengthen our financial position and find an independent path forward. However, the increasingly challenging market environment was exacerbated by the COVID-19 pandemic, which required us to temporarily close all of our stores and furlough the vast majority of our associates. Given these conditions, we have been unable to obtain necessary financing and have no choice but to take these actions.”
The Glasgow store opened in early March and was one of 25 the company opened statewide. It opened in the same location previously occupied by Stage, a moderately priced department store.