Gordmans declares bankruptcy, will liquidate stores

Predicting the demise of Sears & Kmart since 2017!
mbz321
Assistant Store Manager
Assistant Store Manager
Posts: 747
Joined: March 11th, 2010, 7:52 pm
Has thanked: 96 times
Been thanked: 54 times
Status: Offline

Gordmans declares bankruptcy, will liquidate stores

Post by mbz321 »

And the retail carnage of 2017 continues..
http://journalstar.com/business/local/g ... 94f2a.html
storewanderer
Posts: 14385
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Online

Re: Gordmans declares bankruptcy, will liquidate stores

Post by storewanderer »

I wonder how much of an impact chains like Macy's developing their own off price formats is impacting chains like this... I can imagine it makes it harder to get inventory through the close out channels.
architect
Assistant Store Manager
Assistant Store Manager
Posts: 843
Joined: December 8th, 2015, 3:41 pm
Has thanked: 2 times
Been thanked: 7 times
Status: Offline

Re: Gordmans declares bankruptcy, will liquidate stores

Post by architect »

storewanderer wrote:I wonder how much of an impact chains like Macy's developing their own off price formats is impacting chains like this... I can imagine it makes it harder to get inventory through the close out channels.
I think that the biggest issue for Gordman's is simply the markets in which their stores are concentrated. For the most part, their stores are located in Midwestern markets which have seen slower economic growth (with factories closings, jobs often stagnant, etc.). In addition, much of their merchandise left much to be desired. While their home decor selection was great, their clothes leaned poor quality as a whole, and the stores' presentation over the last couple of years had really become disorganized and messy. Although I believe that the chain had growth potential at one point with their current store model, their failure to expand into stronger markets really hurt them in the end.
mbz321
Assistant Store Manager
Assistant Store Manager
Posts: 747
Joined: March 11th, 2010, 7:52 pm
Has thanked: 96 times
Been thanked: 54 times
Status: Offline

Re: Gordmans declares bankruptcy, will liquidate stores

Post by mbz321 »

architect wrote:
storewanderer wrote:I wonder how much of an impact chains like Macy's developing their own off price formats is impacting chains like this... I can imagine it makes it harder to get inventory through the close out channels.
I think that the biggest issue for Gordman's is simply the markets in which their stores are concentrated. For the most part, their stores are located in Midwestern markets which have seen slower economic growth (with factories closings, jobs often stagnant, etc.). In addition, much of their merchandise left much to be desired. While their home decor selection was great, their clothes leaned poor quality as a whole, and the stores' presentation over the last couple of years had really become disorganized and messy. Although I believe that the chain had growth potential at one point with their current store model, their failure to expand into stronger markets really hurt them in the end.
'
I just think there are/were too many 'off price' stores out there, and the smaller ones are finally starting to take the brunt. Perhaps it is getting more difficult for them to acquire quality merchandise? I remember towards the end of the Value City chain, the merchandise became less quality closeouts and more junky merchandise that was obviously made just for them. TJMaxx/Marshall's/and Homegoods being the strongest, and also Ross, Burlington, Tuesday Morning, Gabe's, plus some other fairly sized regional companies and department stores operating their own off price divisions.
storewanderer
Posts: 14385
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Online

Re: Gordmans declares bankruptcy, will liquidate stores

Post by storewanderer »

Burlington just did a major downsizing on its Reno Store for some reason (really busy store...) which is odd, but they have always had a great product mix. They are far better than Ross and I prefer them to TJ Maxx or Marshalls just because they had such a larger store before and more selection (maybe it is more of a toss up, after the downsizing). Though I have not bought anything other than a single small pan at Burlington in the past 5-10 years, I do walk through from time to time. Tuesday Morning is another one that does not look like it does well (though they have much smaller stores, and not really clothing, so their model is a little different).

I was only ever in a Gordman's once and it definitely felt like it leaned lower quality. The store was busy, messy, had a layout that was more like a department store with the racetrack type layout, but physical plant more like a discount store (no carpet and the tube lights).

Off price may be the hot spot to be in right now but retail is ever-changing and that won't be the model forever. Personally, I get much better deals shopping clearance racks in Dillard's, Macy's (well, before they switched to their "Last Act" thing), or Kohl's than these "off price" stores offer.
buckguy
Store Manager
Store Manager
Posts: 1004
Joined: January 31st, 2017, 10:54 am
Has thanked: 3 times
Been thanked: 61 times
Status: Offline

Re: Gordmans declares bankruptcy, will liquidate stores

Post by buckguy »

Given the consolidation of retail and the improvements in supply chains management by retailers and manufacturers, there really isn't enough high quality "closeout" merchandise to go around. Most outlet mall merchandise is either made for outlets or sold at the similar price as regular stores and places like Nordstrom Rack also have a lot made for outlet merchandise. It looks like most of Gordman's stores are in small markets, but even if those stores have large trading areas and little competition, they still need the right merchandise. If they didn't have it, then that may explain the liquidation.
Super S
Posts: 2691
Joined: April 1st, 2009, 9:27 pm
Has thanked: 11 times
Been thanked: 61 times
Status: Offline

Re: Gordmans declares bankruptcy, will liquidate stores

Post by Super S »

buckguy wrote:Given the consolidation of retail and the improvements in supply chains management by retailers and manufacturers, there really isn't enough high quality "closeout" merchandise to go around. Most outlet mall merchandise is either made for outlets or sold at the similar price as regular stores and places like Nordstrom Rack also have a lot made for outlet merchandise. It looks like most of Gordman's stores are in small markets, but even if those stores have large trading areas and little competition, they still need the right merchandise. If they didn't have it, then that may explain the liquidation.
It also doesn't help when a lot of so-called outlet stores are basically a regular store with the word "outlet" slapped on them. Any more, there is virtually no difference in the quality of merchandise or the appearance of the stores.
cathandler
Front-End Supervisor
Front-End Supervisor
Posts: 162
Joined: September 20th, 2016, 7:28 pm
Has thanked: 1 time
Been thanked: 9 times
Status: Offline

Stage Stores wins Gordmans auction; will keep half of stores open

Post by cathandler »

At least one analyst, though, says the deal makes no financial sense
http://www.omaha.com/money/stage-stores ... 0ed62.html
storewanderer
Posts: 14385
Joined: February 23rd, 2009, 3:54 pm
Has thanked: 2 times
Been thanked: 298 times
Contact:
Status: Online

Re: Gordmans declares bankruptcy, will liquidate stores

Post by storewanderer »

Stage is a puzzle. I remember them being in rural towns in Nevada in the 90's as Stage, then going bankrupt and leaving. They reappeared a few years ago in those same towns under the name Bealls with the exact same format as before. The stores have very little traffic, and rather annoying employees trying to soffer you magazine subscriptions and I don't even know what else when you go up to pay for your purchase, but I have actually gotten some very good deals in these stores on some name brand athletic shoes, and some basic items like polo shirts or t-shirts. Sometimes they will run promotions on a Saturday where all merchandise is 50% off the lowest marked price... works well on clearance items that are already 70% off to begin with. I kind of like the small store size since there is not much to look through...

I have spent more money at Stage in the past year than I've spent at Sears or JC Penney in the last decade... which isn't saying a whole lot, but says something.

I also suspect Stage's "confidence" has increased due to the number of JC Penney closures that are taking place in the small markets they are often present in.
pseudo3d
Posts: 3853
Joined: November 12th, 2015, 7:01 pm
Has thanked: 5 times
Been thanked: 77 times
Status: Offline

Re: Gordmans declares bankruptcy, will liquidate stores

Post by pseudo3d »

storewanderer wrote:Stage is a puzzle. I remember them being in rural towns in Nevada in the 90's as Stage, then going bankrupt and leaving. They reappeared a few years ago in those same towns under the name Bealls with the exact same format as before. The stores have very little traffic, and rather annoying employees trying to soffer you magazine subscriptions and I don't even know what else when you go up to pay for your purchase, but I have actually gotten some very good deals in these stores on some name brand athletic shoes, and some basic items like polo shirts or t-shirts. Sometimes they will run promotions on a Saturday where all merchandise is 50% off the lowest marked price... works well on clearance items that are already 70% off to begin with. I kind of like the small store size since there is not much to look through...

I have spent more money at Stage in the past year than I've spent at Sears or JC Penney in the last decade... which isn't saying a whole lot, but says something.

I also suspect Stage's "confidence" has increased due to the number of JC Penney closures that are taking place in the small markets they are often present in.
They do seem to be a lot of smaller towns with small stores. While it wasn't the case at one time, it seems that despite the number of names, they only run one format per market (Palais Royal is Houston-exclusive, where they're located, Bealls is in Texas, probably due to confusion with Bealls-FL, Stage is everywhere else, haven't seen a post-bankruptcy Goody's in the wild)
Post Reply