filed a chapter 11 bankruptcy petition in Texas Tuesday following half a year of declining same-store sales that coincided with its decision to stop selling men's clothes.
The company currently operates 410 stores in 41 states, but said it will use the restructuring to focus its core business around 252 stores, with the rest to be liquidated. The surviving stores were "chosen to strengthen its market position in the junior apparel business," the company said in a release.
Gadzooks will also eliminate 65 corporate and field overhead positions to streamline costs.
"We regret that this action was necessary after so many years of successful results, but our transition to an all-girl format now requires us to concentrate our resources on the continuing improvement of our concept," the company said.
The company initiated the store closings when it reported a 25% decline in December same-store sales on Jan. 8. It has previously warned it must consider a bankruptcy filing if the trends didn't improve.
No mention was made about the fate of Gadzooks' common stock in the bankruptcy release, but in the vast majority of such filings it is rendered worthless.