Gump’s, a San Francisco luxury department store founded in 1861, is holding a going-out-of-business sale, according to The Wall Street Journal. The retailer filed for bankruptcy earlier in August following a rapid decline in sales, and attempts to sell the business or find new investors have failed.
The drop in sales followed several years of decline at retail outlets in general, according to Gump’s. The retailer claims shoppers have been shifting to e-Commerce and larger chains, and purchases from its web site and catalog now account for more than 75% of Gump’s sales.
Advertisement
Gump’s generated more than $59.7 million in net revenue in 2017, according to court papers. However, the retailer ultimately lost $5 million in 2016 and $5.6 million in 2017, and required loans to stay in business, according to the San Francisco Chronicle. Court papers show Gump’s owes more than $5.7 million in principal and interest on a loan from Sterling National Bank, as well as more than $9.3 million on a junior note, according to The Wall Street Journal.
The retailer will continue looking for buyers during bankruptcy. Gump’s signed nondisclosure agreements with 40 prospective investors and 10 prospective lenders, but no sale has been completed due to “lack of liquidity and overburdened capital structure,” Gump’s COO Tony Lopez wrote in a court filing.
