After opening their doors in early March, Gordmans stores in Woodstock and Front Royal will be shutting down after their parent company filed for bankruptcy.
Stage Stores Inc., which is based in Houston and operates stores such as Palais Royal, Bealls, Goody’s Peebles and Gordmans, filed for Chapter 11 bankruptcy earlier this month.
The company owns stores in 42 states across the country.
“This is a very difficult announcement, and it was a decision that we reached only after exhausting every possible alternative,” Michael Glazer, president and CEO of Stage Stores, states in a news release. “Over the last several months, we had been taking significant steps to attempt to strengthen our financial position and find an independent path forward. However, the increasingly challenging market environment was exacerbated by the COVID-19 pandemic, which required us to temporarily close all of our stores and furlough the vast majority of our associates. Given these conditions, we have been unable to obtain necessary financing and have no choice but to take these actions.”
Gordmans held grand openings at 425 South St. in the Royal Plaza in Front Royal as well as at 1009 S. Main St. in Woodstock on March 3.
Both stores are holding liquidation sales after being closed since mid-March due to COVID-19. Stores began to reopen May 15 to “wind down” operations.
On Gordmans’ website, Glazer said stores are expected to continue honoring existing customer programs, including gift cards and returns, during the closing sales during the first 30 days of the reopening, but new gift cards will not be issued.
Stage has 738 stores nationwide.