In 1975, Gordman opened a small test store in South Omaha at 25th and L Streets named the 1/2 Price Store. The concept was to sell Richman Gordman merchandise at half price. This led to the opening of six more 1/2 Price Stores in the 1970s; a separate corporate structure was built to accommodate the growing business. By the company's 75th anniversary in 1990, it operated 16 1/2 Price Store off-price department stores and 16 Richman Gordman department stores. In 1992, however, Richman Gordman filed for bankruptcy protection, and all of its department stores closed. The off-price department store division became the company's sole focus after it emerged from bankruptcy under the Richman Gordman 1/2 Price Stores name in 1993.