Gordmans Stores modified joint plan of liquidation confirmed by court

By Caroline Salls

Pittsburgh, Oct. 18 – Gordmans Stores, Inc.’s modified joint plan of liquidation was confirmed on Oct. 18 by the U.S. Bankruptcy Court for the District of Nebraska.

The order also approved the disclosure statement for the plan.

An administrator will be appointed under the plan who will be responsible for winding down Gordmans’ businesses and affairs, resolving disputed claims, making all distributions to holders of allowed claims in accordance with the plan, litigating any causes of action and filing tax returns.

Funding for plan distributions will come from cash on hand, sale proceeds, causes of action, the company’s rights under its purchase and agency agreements and plan administrator assets.

Under the plan, priority claims and senior credit facility claims will be paid in full in cash.

“Other” secured claims will be paid in full in cash or holders will receive the collateral securing the claim.

Holders of general unsecured claims will receive a share of cash from the plan administrator assets.

Holders of parent company interests, section 510(b) claims and intercompany claims will receive no distribution.

Omaha-based Gordmans is an everyday value-priced department store. The company filed for bankruptcy on March 13, 2017 under Chapter 11 case number 17-80304.

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