Peebles Waits To Reopen And Restart Its Final Closing Sale

Can a pandemic force a retailer to close during its own liquidation sale? That is what happened to Peebles, a group of small department stores located in many rural or underpopulated communities.

In the summer of 2019, Stage Stores
SSI
, Peebles’ parent company, decided to switch all of its retail locations to a new format with a new name. Each store held its own closing sale in preparation for the changeover to the Gordmans brand, an off-price concept with strong growth potential. It was a huge undertaking. The conversion process took time and money but it promised rewards. The transition to Gordmans was expected to be completed by the third quarter of 2020. 

However the 2019 holiday selling season proved to be devastating to the company. Stage Stores dramatically missed all targeted sales goals. As bills mounted, the company quickly ran out of cash. It was not just a cash flow problem; the company was broke, seemingly unfixable. Its stock value dropped 95% in just a matter of months. It was an amazing fall from grace.

Amid the chaos, Peebles continued to reopen as Gordmans. On March 17, seventeen Virginia locations celebrated with balloons, bands, and ribbon cuttings. One week later, they were closed until further notice due to COVID-19.

Unable to negotiate concessions with its vendors, Stage Stores filed for Chapter 11 bankruptcy protection on May 10. With no buyer to resurrect the business, it is conducting an orderly wind down of its operations. On Friday, Stage Stores will reopen in states, where quarantine restrictions have relaxed, for a final liquidation sale. 

A number of Peebles stores sit idle in shopping centers located in states that are closed to non-essential retail businesses. These stores are stuck in a strange form of limbo, patiently waiting to reopen. But these stores will never become Gordmans.

Peebles began as much more than just another retailer in a strip shopping center. It was founded in 1891 in the small farm town of Lawrenceville, Virginia. By the 1920s and 1930s, it expanded throughout southern Virginia and the Carolinas. By the 1970s, Peebles flourished in shopping centers throughout the Mid-Atlantic region. The stores were designed to meet the needs of their communities. They were modest in size but relatively complete. Their customers were fiercely loyal. No other local store brought brands like Esteé Lauder, Nike
NKE
, Etienne Aigner, and Esprit to rural locations on the East Coast, Minnesota, Mississippi and more.

The internet was a game changer for retailers and Peebles was not immune to evolving shopping patterns. Its local customers could now order from Amazon
AMZN
and other mail order houses no matter where they lived. Small towns grew less dependent on Peebles.

As more states lift their restrictions, Peebles may have its chance to finish its store closing sales. For many people, its empty storefronts will seem like just another retailer that fell victim to COVID-19. It won’t be such an unusual sight. But very few retailers can boast a 129-year lifespan. The loss of the Peebles name and business deserves notice and respect.