Stage Stores is acquiring select assets of Gordmans Stores through a bankruptcy auction.
Under terms of the transaction, Stage will 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.
In mid-March, Gordmans filed for Chapter 11 bankruptcy protection.
Officials with Stage said it 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.
The remaining assets at Gordmans’ other 48 stores and other facilities are expected to be liquidated by Tiger Capital Group, LLC and Great American Group, LLC.
“We believe the Gordmans business model offers great potential and, without the burden of a high level of debt, unprofitable locations and an oversized infrastructure, we expect the Gordmans business will be accretive to our earnings,” said Michael Glazer, president and CEO of Stage.