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Gordmans seeks head merchant

Gordmans Stores is looking for a new head merchant — in addition to a permanent CEO - following the resignation of Michael Morand as EVP and chief merchandising officer.

The company said Morand resigned on May 28, the same day the operator of 94 stores, reported disappointing first quarter results and held its shareholders’ meeting. Gordman’s disclosed Morand’s departure in a filing with the Securities and Exchange Commission on Friday, May 30. Interim CEO Scott King will oversee the retailer’s merchandising function until a replacement is named, the company said.

In other personnel moves, Jason Neimark resigned from the board of directors and was replaced by Brian Urbanek. Both men are affiliated with Sun Capital Partners, the private equity firm which owns a controlling interest in Gordmans. Urbanek previously served on the Gordmans board.

The off-price department store retailer is also searching for a full time CEO following the resignation earlier this year of Jeff Gordman amid ongoing sales challenges. Sales for the 13-week first quarter ended May 4 increased 8.8% to $143 million as the result of new store expansion. Same store sales declined 2.7% on top of a prior year decline of 10.5%. A loss of $700,000, or four cents a share, was well below a prior year profit of $3.2 million, or 17 cents a share. First quarter results were negatively affected by expenses of two cents a share related to the departure Gordman and a three cents a share impact due to increased interest expense related to a $45 million loan that was taken out last fall to pay a special dividend of $3.60.

 

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