As retailers struggle with COVID-19 closures and decreasing sales, the owner of Gordman’s has announced the company will file for bankruptcy.
According to a Sunday statement, Gordman’s parent company Stage Sales will begin reopening stores in coming weeks to start going-out-of-business sales unless it can find a buyer.
The off-price clothing store currently has locations in Burnsville and Woodbury.
In Minnesota, Gov. Tim Walz’s Stay at Home order will keep retailers like Gordman’s closed for most services through May 18. Some stores in the country will begin sales as soon as May 15, according to the announcement.
But the company was in trouble long before the pandemic, having filed for bankruptcy in 2018, since when it shuttered four Minnesota locations in Edina, Mankato, Coon Rapids, and Roseville.
“We appreciate the willingness of our landlords and vendors to work constructively with us to try and avoid this outcome," Stage Sales CEO Michael Glazer said in a statement.
"We hope that their efforts and the actions we have taken to reposition the business over the last several months will help attract the right partner who is interested in our off-price concept,”
The company will continue to honor gift cards and returns for 30 after opening. Employees working during this time will also receive continued salary and benefits.
Retailers were already facing record closures in 2019, according to Business Insider. Added stresses due to the pandemic will make things worse, with stores including Game Stop, Pier One and Gap.