Stage Stores wins bid to acquire selected assets of Gordmans
Stage Stores has won a bid to acquire certain assets of the bankrupt Nebraska-headquartered department store chain, Gordmans Stores.
The acquisition price was not disclosed by the two American retailers.
The acquisition would help Stage Stores to expand and diversify its portfolio through Gordmans’ complementary concept and customer demographics in new Midwest markets.
Stage will buy at least 50 store leases of Gordmans while holding rights to assume leases for seven more stores along with a distribution center.
Under the transaction terms, the department store chain will get ownership of all the inventory, fixtures, equipment, furniture, among other assets at 57 Gordman stores. Besides, it will own the bankrupt retailer’s trademarks and other intellectual property.
Stage president and CEO Michael Glazer said: “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.”
“Gordmans’ stores are a natural complement to Stage, bringing beneficial diversification and scale to our business, while creating synergies through the use of our current infrastructure.
Glazer concluded that through the acquisition, Stage gets an opportunity to leverage from Gordmans’ discounted price competencies, youthful customer base, and robust home and gifts businesses.
Subject to court’s approval and customary closing conditions, the acquisition is likely to be completed in Stage’s Q1 2017.
As far as the remaining assets of Gordmans are concerned, most of the 48 stores along with other facilities are likely to be dissolved by Tiger Capital Group and Great American Group in accordance with their joint bid with Stage.
Image: The headquarters of Stage Stores in Houston, Texas. Photo: courtesy of WhisperToMe/Wikipedia.org.