[3/17/17] Founded just over 100 years ago, discount department store Gordmans (once known as Richman Gordons) is a fixture of the Midwest. But after its expansion under Sun Capital, growth slowed and the company has struggled with sales for several quarters. Sales fell 75% in the past year alone, and in January, Gordmans announced an unspecified number of job cuts amid “the current sluggish retail environment.”
Though not unusual for a private equity-owned company, Gordmans is also loaded with debt: Average borrowings during the thirty-nine week periods ended Oct. 29, 2016 were $31.7 million, compared to $19.5 million as of Oct. 31, 2015, according to a Securities and Exchange Commission filing. On Monday, Gordmans announced that it has entered into an agreement with Tiger Capital Group, LLC and Great American Group, LLC for liquidation of inventory and other assets of its retail stores and distribution centers, subject to the bankruptcy court’s approval and depending on the arrival of any competing offers.