Gordmans files for bankruptcy

Gordmans Stores Inc plans to liquidate assets and inventory after the Nebraska-based company filed for Chapter 11 bankruptcy protection yesterday.

The company operated 106 stores in 22 states.

Acording to Milwaukee Business Journal said that Gordmans had listed total debt of $131 million in its Chapter 11 papers and had reported losses in five of the past six quarters.

Gordmans said in a statement that it has entered into an agreement with Tiger Capital Group and Great American Group to handle the sale and liquidation of inventory and assets. That process would need the approval of the bankruptcy court to proceed.

According to Andy Hall, president and CEO of Gordmans, all stores would operate as usual without interruption ''until further notice.''

''The management team and all of our associates remain committed to continuing to provide great merchandise and service to our guests during this process,'' he said.

The company which was established in 1915, employed over 5,000 associates.

"It's business as usual in our stores and Gordmans.com!" Gordmans home page said.

"In light of our recent decision to file Chapter 11 bankruptcy, rest assured that you'll still find the same great values, styles and exceptional service. Our doors are open - and spring is waiting!"

In January, the company had announced a "workforce consolidation."

"Until further notice, all Gordmans stores are operating as usual without interruption," Hall had said in the announcement. "The management team and all of our associates remain committed to continuing to provide great merchandise and service to our guests during this process."