Midwestern US department store Gordmans has collapsed, filing for bankruptcy protection, after sales slumped 75 per cent last year.

Omaha-based Gordmans, a discounter, runs 106 stores in 62 towns and cities across 22 states of the US. It is said to be carrying an $85 million debt burden, largely due in 2002.

The publicly listed company, which focuses on apparel and homewares, was founded a century ago, originally as Richman Gordons. It was bought by private equity company Sun Capital in 2008 and floated two years later, with a follow-up offering in 2012 which helped fund a 30 per cent expansion in stores and a national website.

Gordmans CEO Andy Hall said in a statement that all stores would continue to trade as usual with the restructure process was underway. However, distribution centres in Indiana and Nebraska will be shut down along with the company’s Omaha headquarters, on May 12, resulting in nearly 600 job losses.  

Gordmans is one of a growing list of US department store retailers closing outlets, including JC Penney, Sears, Target, Macy’s and Kmart.