A buyer swooped in to save the Gordmans in Valparaiso after the company filed for bankruptcy, but the recently opened Schererville location is still slated to close.
Houston-based Stage Stores acquired the assets of 57 Gordmans stores, including a minimum of 50 leases, including the Gordmans in the Porter's Vale Shopping Center at Ind. 49 and Lincoln Highway in Valparaiso.
The retailer, which operates 796 specialty department stores in 38 states, bought the Gordmans assets for $37 million to $43 million, and is looking to keep stores open under the Gordmans brand.
"Gordmans is well-positioned in Midwestern markets with a strong brand, a loyal customer base, and a significant opportunity to benefit from growth in the off-price segment," Stage Stores President and Chief Executive Officer Michael Glazer said. "We look forward to serving Gordmans’ customers by bringing them great values and providing an engaging shopping experience.”
Stages expects the Gordmans stores will bring in an additional $230 million to $245 million in revenue, and hopes to rebuild Gordmans' depleted inventory by the holiday season.
“We believe this acquisition strengthens our entire portfolio and will enable us to drive improved performance, resulting in greater shareholder value through positive earnings and cash flow,” Glazer said.
Gordmans will remain a separate brand. The Omaha, Nebraska-based retailer, which has been one of the fastest-growing stores in the country, sells a hodgepodge of apparel, home decor and accessories.
The deal did not include the three-year-old 50,079-square-foot Gordmans store at Shops on Main shopping center at Indianapolis Boulevard and Main Street, in Schererville.
An employee there said the liquidation sale started on Friday, and the store was slated to close by the end of May, unless it sold out of inventory sooner.
After years of slowly gaining market share, online retailers like Amazon, Jet and Zappos have been driving brick-and-mortar stores out of business.
Retailers that are closing all or some of their stores in the Region and the south surburbs so far in 2017 include HHGregg, Payless, Dollar Express, MC Sports, Family Christian, Gordmans, The Limited, Wet Seal, Kmart, Sears Appliance and Hardware Store, Carson's Clearance Center and Gander Mountain.