Penn Yan Gordman’s reopens, expected to close in August
The Gordman’s store in Penn Yan, so recently revamped after the purchase of Peeble’s, is open for business, but only to liquidate the store’s inventory. The retailer, which specializes in apparel and home decor and celebrated a grand opening in February, is part of Stage Stores Inc., which is based in Houston.
Stage announced earlier in May that the company has filed voluntary petitions under Chapter 11 of the bankruptcy code in U.S. Bankruptcy Court. According to the filing, the company will solicit bids to sell its business or any of its assets and initiate an orderly wind-down of operations at certain locations if it receives a viable bid.
The stores have been closed since March and have been slowly reopening as permitted across the country as they begin to liquidate inventory, according to a company news release.
“This is a very difficult announcement, and it was a decision that we reached only after exhausting every possible alternative,” said Michael Glazer, president and CEO of Stage Stores. “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.”
The company intends to seek approval for a consensual use of cash collateral to ensure it has the liquidity necessary to support its operations under Chapter 11. It is seeking court authorization to support its operations during the court-supervised process, including the continued payment of employee wages, salaries and health benefits without interruption for those employees who are working during this time.
Management in Penn Yan says they have been told the store will be closing possibly as soon as August. As part of the wind‑down, the company expects to honor existing customer programs, including gift cards and returns, for the first 30 days after a store reopens. The company anticipates that it will stop accepting any outstanding gift cards or honoring other customer programs after that time.