Stage Stores, Inc. today announced that its subsidiary has prevailed in its bid to acquire select assets of Gordmans Stores, Inc. through a bankruptcy auction.
Stage Stores, Inc. Thursday announced that its subsidiary has prevailed in its bid to acquire select assets of Gordmans Stores, Inc. through a bankruptcy auction.
Under the terms of the transaction, the Stage subsidiary will, subject to exceptions in the purchase agreement, acquire a minimum of 50 Gordmans store leases, with rights to assume leases for an additional seven stores and a distribution center; all of Gordmans’ inventory, furniture, fixtures, equipment and other assets at the 57 store locations; and the trademarks and other intellectual property of Gordmans.
Stage intends to fund the transaction and related investments from existing cash and availability under its credit facility.
The transaction is expected to close during Stage’s first quarter of fiscal 2017, subject to the approval of the court administering the Gordmans bankruptcy and customary closing conditions.
Jeff Gordan released a statement Thursday afternoon:
Dear Gordmans Associates, Vendors, Landlords and Friends,
First, I am humbled by, as well as deeply grateful for, the outpouring of support I have received over the last two weeks from hundreds of Gordmans associates, business partners, family and friends with words of encouragement, appreciation and belief in our ability to restore Gordmans to a great place to shop and, even more importantly, a great place to work. You provided me with an endless source of inspiration to work nonstop 24/7 over the last few weeks in an intensive effort to ensure that Gordmans would continue as a going concern.
While many inquired as to whether I was undertaking this initiative to preserve the legacy of a 102 year-old family company founded by my great-grandfather Sam Richman, I was motivated by a far more important purpose: to once again have the privilege to lead…