St. Joseph’s Gordmans could be spared in acquisition

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gordmansThere could be hope for the Gordmans in St. Joseph after a competing company acquired the chain through a bankruptcy auction.

Last week, Stage Stores, Inc. announced it acquired Gordmans Stores Inc.  As we previously reported, Gordmans operates more than 100 stores in 22 states.  The chain filed for bankruptcy at the beginning of March.

According to a news release, under the terms of the transaction, the Stage subsidiary will, subject to exceptions in the purchase agreement, acquire a minimum of 50 Gordmans store leases, with rights to assume leases for an additional seven stores and a distribution center; all of Gordmans’ inventory, furniture, fixtures, equipment and other assets at the 57 store locations; and the trademarks and other intellectual property of Gordmans.

There are 57 stores represented on the designation list, including the St. Joseph location. A spokeswoman with Stage said at least 50 of the designation stores will continue to operate.

“Stage made a successful bid to take over at least 50 of those store leases, as well as inventory and other assets. As part of the deal, Stage could acquire an additional seven store leases,”said Bria Worthington Lundy, Dir. of Public Relations. “We are still in negotiations on some stores so we are not at the point to discuss which of the 50 Stage will operate.”

The remaining 48 stores and other facilities are expected to be liquidated. To view the stores slated to close in the court filings CLICK HERE.

Michael Glazer, President and Chief Executive Officer of Stage said he feels like the Gordmans business model offers potential without the burden of a high level of debt, unprofitable locations and an oversized infrastructure.

“Gordmans’ stores are a natural complement to Stage, bringing beneficial diversification and scale to our business, while creating synergies through the use of our current infrastructure. By acquiring Gordmans, we believe that we have an opportunity to benefit from its off-price competencies, deep connection with a youthful customer, and strong home and gifts businesses,” Glazer said. “We are pleased to enhance our store portfolio with the most desirable Gordmans locations, giving Stage a strong Midwestern presence in markets generally larger than those we serve today. We plan to maintain the Gordmans brand and look forward to welcoming a significant number of Gordmans employees to our Company.”

The transaction is expected to close during Stage’s first quarter of fiscal 2017, subject to the approval of the court administering the Gordmans bankruptcy and customary closing conditions.