Gordmans parent files Chapter 11 bankruptcy; liquidation sales set to begin

NC GAZETTE / WBRT RADIO
STAFF REPORT

Thursday, May 14, 2020 –– Stage Stores, the parent company of retail stores that include the Gordmans store in Bardstown, as well as Goody’s, Bealls, Peebles, Palais Royal, and Bealls, filed for Chapter 11 bankruptcy earlier this week.

Stage Stores is the third large retailer to file for bankruptcy protection in the past 10 days.

In a press release, the Houston-based company said it is searching for a buyer.

The company plans to reopen 550 of its stores on Friday, May 15, 2020, and begin liquidation sales.

The Bardstown Gordmans is not on the list of stores that will reopen Friday. The rest of the company’s 738 stores will reopen soon after and begin liquidation sales as well.

Stage Stores operates stores in 42 states.

The company converted its Peebles store in Bardstown to Gordman’s a few months ago.

In addition to its Bardstown store, Stages operates 28 Gordmans stores across Kentucky, including stores in Mayfield, Murray, Paris, Mount Vernon, Princeton, Madisonville, Henderson, Central City, Beaver Dam, Leitchfield, Hopkinsville, Russellville, Glasgow, Campbellsville, Shelbyville, Lexington, Winchester, Danville, Campbellsville, Somerset, London, Harlan, Hazard, Paintsville, Mount Sterling, Morehead, Louisa, and Maysville.

Michael Glazer, the company’s chief executive officer, said the company’s financial condition was further exacerbated by the COVID-19 pandemic, which forced the store to furlough most of its employees and close its stores.

In its bankruptcy filing, Stage said it owes $500 million to $1 billion to more than 10,000 creditors, including Nike, Skechers, Ralph Lauren, Levi and Adidas. The company reported $1.58 billion in annual revenue in 2018.

The company’s stock, which was trading lately at less than $1 a share, plunged 22 percent following this week’s bankruptcy announcement. Its shares are down more than 95% this year.

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