Gordmans and RadioShack in Tyler to close after bankruptcies

Published 1:26 am Tuesday, March 14, 2017

Gordmans was one of the first stores to open in the new mall, and the first of it's kind to open in Texas at The Village at Cumberland Park. David Allen/Freelance

The retail disruption continues, as bankruptcies by the Gordmans and RadioShack corporations will close their Tyler locations, and the fate of the J.C. Penney in Broadway Square Mall remains uncertain.

Like Macy’s, which is closing within days, retailers say online sales and a plethora of options have hurt their bottom lines.

Gordmans Stores Inc., the century-old discount department store chain, filed for bankruptcy with plans to liquidate its inventory and assets. That means the Tyler store, which opened in The Village at Cumberland Park in 2014, will close. It was the firm’s first store in Texas.

And RadioShack has announced another 187 stores will close nationwide as its bankruptcy proceedings continue, with the Tyler location on Troup Highway closing March 31, according to an employee at that location.

At the same time, the fate of the J.C. Penney store in Broadway Square Mall remains uncertain after the company announced it would close up to 140 stores nationwide in the coming year. Company spokesperson Christina Voss said an announcement will be made in mid-March, so it could come within days.



GORDMANS

Gordmans, which posted losses in five of the past six quarters, listed total debt of $131 million in Chapter 11 papers filed Monday in Nebraska federal court. Gordmans said in a statement that it has an agreement with Tiger Capital Group and Great American Group “for the sale in liquidation of the inventory and other assets of Gordmans’ retail stores and distribution centers,” subject to court approval or a better offer.

For now, the chain will operate “as usual without interruption,” CEO Andy Hall said in the statement.

Omaha, Nebraska-based Gordmans, which operates over 100 stores in 22 states and employs about 5,100 people, is the latest victim in a retail industry suffering from sluggish mall traffic and a move by shoppers to the internet.

The shift has been especially rough on department stores, including regional chains like Gordmans that once enjoyed strong customer loyalty, and even national concerns like Sears Holdings Corp. and Macy’s Inc. have had to close hundreds of locations to cope with the slump.

“Like many other apparel and retail companies, the debtors have fallen victim in recent months to adverse macro-economic trends, especially a general shift away from brick-and-mortar to online retail channels, a shift in consumer demographics and expensive leases,” Chief Financial Officer James B. Brown said in court papers.

RADIOSHACK

RadioShack has filed for Chapter 11 bankruptcy protection for the second time in just over two years, putting the future of the nearly 100-year-old electronics retailer in doubt.

Once known as the place to buy batteries and obscure electronic parts, RadioShack has struggled to hang on to customers as more people shop online.

RadioShack said it is closing 200 stores and will evaluate its options for the remaining 1,300. Sprint Corp. said it will turn “several hundred” of the remaining locations into Sprint-only stores, but declined to give a specific number.

RadioShack, based in Fort Worth, has nearly 5,900 employees, according to bankruptcy paperwork filed Wednesday. The company said it will try to “preserve as many jobs as possible.”

Its stores are open for business, but RadioShack said that anything sold at them cannot be returned for a refund. Its website, however, will continue to accept returns on items bought from RadioShack.com. The company said those holding a RadioShack gift card have until April 7 to spend it at stores.

J.C. PENNEY

J.C. Penney plans to “optimize” its retail operations in coming months, and that will mean closing 130 to 140 stores, according to a February news release from the company.

“We understand that closing stores will impact the lives of many hard-working associates, which is why we have decided to initiate a voluntary early retirement program for approximately 6,000 eligible associates,” company Chairman and CEO Marvin R. Ellison said. “By coordinating the timing of these two events, we can expect to see a net increase in hiring as the number of full-time associates expected to take advantage of the early retirement incentive will far exceed the number of full-time positions affected by the store closures.”

The stores to be closed represent about 14 percent of the company, the release said.

The Associated Press and Bloomberg News Service contributed to this report.