Stage Stores files for bankruptcy

Stage Stores Inc.
has filed for chapter 11, days after reports that bankruptcy preparations were in the works. About 557 stores are expected to reopen on May 15, 67 additional stores are expected to open by May 28 and the remaining stores will open by June 4. Liquidation will begin when stores reopen. Stage Stores portfolio includes Stage department stores, Bealls, Goody’s and Palais Royal. Stage Stores has 13,600 employees, according to FactSet. The company had 738 stores as of a March 27 business update. “[T]he increasingly challenging market environment was exacerbated by the COVID-19 pandemic, which required us to temporarily close all of our stores and furlough the vast majority of our associates,” said Chief Executive Michael Glazer in a statement. “Given these conditions, we have been unable to obtain necessary financing and have no choice but to take these actions.” The company expects to honor gift cards and returns for the first 30 days after a store reopens. Chief Financial Officer Jason Curtis is leaving the company effective May 22 to pursue an opportunity with another retailer. CEO Glazer will perform the CFO duties. Stage Stores stock, which has been halted, has lost more than 95% of its value for the year to date while the S&P 500 index
is down 9.8%.

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