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Discount retailer Gordmans files for bankruptcy; 6 MN stores at risk of closure

The company CEO says "until further notice, all Gordmans stores are operating as usual without interruption."

Gordmans has filed for bankruptcy protection, throwing the future of its 101 U.S. stores across 22 states – including six in Minnesota – into serious doubt.

The Nebraska-based discount department store chain announced it had entered into an agreement to liquidate the inventory and assets of its retail stores and distribution centers.

President and CEO Andy Hall said that "until further notice, all Gordmans stores are operating as usual without interruption," though the Lincoln Journal Star reports that this is normally a step taken before dissolving the company and closing all its stores.

Gordmans' Minnesota stores are in Edina, Coon Rapids, Woodbury, Roseville, Burnsville and Mankato, with the Star Tribune noting that the Coon Rapids store only opened last summer and the Edina store at Southdale opened in 2015.

It's the second blow for in-store retail to hit Minnesota in the past week, with Gander Mountain announcing on Friday that three of its Minnesota stores would be among 32 nationally to close after it too filed for chapter 11 bankruptcy relief.

Bloomberg says the century-old Gordmans is the "latest victim" to suffer from "sluggish" mall traffic as more shoppers head online for their purchases, noting that other retailers like Sears and Macy's have also been making cutbacks.

It adds that Gordmans has posted losses in five of the past six quarters and has a total debt of $131 million.

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