Bankruptcy lawyers may be the only ones making money these days.
Gordmans Stores may be the next to file for Chapter 11, Bloomberg reports, quoting sources close to the situation.
The Midwestern department store chain, which launched in 1915 in Omaha, operates 106 stores in 22 states, and offers up to 60 percent off on name brand apparel, accessories, footwear and home décor. The company was sold to private equity firm Sun Capital Partners in September 2008.
In January, Gordmans announced it was eliminating non-store positions.
In its most recent earnings statement, Gordmans reported 6.7% drop in net sales to $143. 5 million for the third quarter, ended Oct. 29, 2016. Comp stores sales dropped by 9.3%. Gross profit dropped to 43.8% of net sales to $62.9 million from 44.4%.
Gordmans is just the latest store to land in a precarious position. Retail has been rocked by a string of bankruptcies and store closures in recent months. Bob’s Stores, Wet Seal, The Limited, and most recently, BCBG have all filed. Meanwhile competitors like Sears continue the uphill battle to stay alive.