Gordmans Stores Inc. (NASDAQ:GMAN) shares lost more than one third on Monday after heritage gave way to reality and the century-old discount department store chain filed for bankruptcy with plans to liquidate its inventory and assets.
Gordmans posted losses in five of the past six quarters caved in after racking up a debt of $131mln, according to Chapter 11 papers filed earlier.
Omaha, Nebraska-based Gordmans, which operates over 100 stores in 22 states and employs more than 5,000 people, has felt the wrath of falling footfall and a migration by consumers to online shopping.
Although there were hopes that regional badges like Gordmans might hold out thanks to local customer loyalty, it now appears that the crisis which is engulfing national names like Sears (NASDAQ:SHLD) and Macy’s (NYSE:M) is also hitting regionals.
Gordmans shares were down 32% at $0.08 on Monday.
Story by ProactiveInvestors