Source: Duluth News Tribune
Gordmans will keep its store in Fargo and in three other cities in North Dakota while closing five locations in Minnesota, according to documents filed in court over the weekend.
The Omaha-based discount retailer's filings to U.S. Bankruptcy Court over the weekend included two lists, one with 57 stores that will remain open and another listing 48 stores that will be closed.
Stores on the closing list include Burnsville, Coon Rapids, Edina and Roseville in the Twin Cities area as well as the company's Mankato store in southern Minnesota. Stores in Appleton and Grand Chute in Wisconsin are also on the closing list.
All four Gordmans stores in North Dakota are slated to remain open, with locations in Bismarck, Grand Forks, Minot and Fargo. The brand's stores in Woodbury, Minn., Kenosha, Madison and Wausau in Wisconsin and Rapid City and Sioux Falls in South Dakota also won't be closed, according to the new documents.
Gordmans filed for bankruptcy protection in March, the latest in several national retailers to shutter stores or seek bankruptcy protection after suffering from declining sales in the midst of rapid changes in shopping and spending habits.
The company opened its Grand Forks and Fargo stores in March 2001.
A Houston-based retailer, Stage Stores, is paying $75.6 million to take over the Gordmans stores staying open, the Omaha World-Herald reported.
Stage plans to keep the Gordmans brand in place, the company said in a news release.
"We believe the Gordmans business model offers great potential and, without the burden of a high level of debt, unprofitable locations and an oversized infrastructure, we expect the Gordmans business will be accretive to our earnings," CEO and President Michael Glazer said in a statement.