
Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Author: Joel R. Glucksman
Date: March 28, 2017
Partner
201-896-7095 jglucksman@sh-law.comAccording to Bloomberg Markets, Gordmans Stores Inc. plans to liquidate all of its stores. After reporting losses during five of its six past quarters, the company listed a total debt of $131 in Nebraska federal court. For now, the stores will run as usual. However, they’ve entered an agreement with Tiger Capital Group and Great American Group to liquidate the inventory and other assets within all of its retail department stores and distribution centers. The liquidation sale is subject to the Bankruptcy Court’s approval.
Andy Hall, president and chief executive officer of Gordmans, made the following statement in regard to the Chapter 11 bankruptcy filing:
“Until further notice, all Gordmans stores are operating as usual without interruption,” he said. “The management team and all of our associates remain committed to continuing to provide great merchandise and service to our guests during this process.”
Gordmans isn’t the only company fizzling out in 2017. According to Business Insider, nearly every major department retailer chain has closed – or will close – the doors of many stores. Macy’s, Kohl’s, Walmart and Sears are among the chains that have shut down stores over the years to make up for losses, but it’s not over yet. Macy’s plans to close 100 more of its locations this year. Sears will close 30 of its Sears and Kmart stores in the next month, and even CVS Pharmacy plans to close 70 of its stores.
“Like many other apparel and retail companies, the debtors have fallen victim in recent months to adverse macroeconomic trends, especially a general shift away from brick-and-mortar to online retail channels, a shift in consumer demographics, and expensive leases,” Gordmans Chief Financial Officer James B. Brown states in official court documents.
As for the stores that won’t be closing, retailers will likely look into ways to shrink existing locations, according to RJ Hottovy, a consumer strategist for Morningstar.” As leases come up, you’re going to see a gradual rotation into smaller-footprint stores,” he told Business Insider.
Neil Saunders, CEO of the retail consulting firm Conlumino, added that the change in shopping patterns should be considered by companies across the country as they strategize on how to move forward:
“Across retail overall the U.S. has too much space and too many shops,” he told the source. “As shopping patterns have changed, some of those shops are also in the wrong place and are of the wrong size or configuration.”
These department stores can’t blame themselves for the downfall. As Saunders stated, it’s the shift in shopping patterns. Less people are heading to the malls to buy clothing, accessories, footwear, furniture and more. Instead, they’re purchasing all of these goods from the comfort of their own homes – via the internet. According to an online survey by comScore, 17 percent of shoppers plan to make fewer trips to department stores in the next year, and instead, use their electronic devices to shop. Researchers also found that more than 50 percent of the respondents made their purchases online in 2016, up a substantial 48 percent since 2015.
“These are exciting and challenging times for retailers,” Teresa Finley, chief marketing officer at UPS told comScore. “The industry is changing at an incredibly fast rate. Listening closely to what shoppers want and boldly trying new techniques can give retailers a competitive advantage in this very competitive industry. UPS is working with shoppers and retailers to provide a seamless, engaging experience that everyone will enjoy.”
This says a lot about the shifting landscape, and how online shopping will likely continue to be the prominent way to shop as technology continues to transform.
Are you a creditor in a bankruptcy? Have you been sued by a bankrupt? If you have any questions about your rights, please contact me, Joel Glucksman, at 201-806-3364.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Merging two companies is a complex legal and business transaction. A short form merger, in which an acquiring company merges with a subsidiary corporation, offers a more streamlined process. However, like all M&A transactions, it is important to understand the legal nuances and proper due diligence in mergers and acquisitions. What Is a Short Form […]
Author: Dan Brecher
The Trump Administration’s new tariffs are having an oversized impact on small businesses, which already tend to operate on razor thin margins. Many businesses have been forced to raise prices, find new suppliers, lay off staff, and delay growth plans. For businesses facing even more dire financial circumstances, there are additional tariff response options, including […]
Author: Brian D. Spector
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Author: Christopher D. Warren
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
Author: Scott H. Novak
On January 28, 2025, the Trump Administration terminated Gwynne Wilcox from her position as a Member of the National Labor Relations Board (NLRB or the Board). Gwynne Wilcox, a union side lawyer for Levy Ratner, was confirmed to the Board for an original term in 2021 and confirmed again for a successive five-year term expiring […]
Author: Matthew F. Mimnaugh
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!