May 12, 2020
Discount retailer Stage Stores, Inc. has filed voluntary petitions under Chapter 11 at U.S. Bankruptcy Court in Houston and is seeking a buyer. The Houston-based company, which operates under the Goody’s, Bealls and Gordmans brands, will begin liquidation sales at 557 of its stores as they reopen on May 15.
Although Stage Stores had taken “significant steps” to strengthen its financial position, “the increasingly challenging market environment was exacerbated by the COVID-19 pandemic,” said CEO Michael Glazer. “Given these conditions, we have been unable to obtain necessary financing and have no choice but to take these actions.”
Kirkland & Ellis LLP is acting as legal advisor to Stage Stores and PJ SOLOMON is its investment banker. Berkeley Research Group is acting as restructuring advisor, and A&G Realty is serving as real estate advisor to the company. Gordon Brothers Retail Partners will manage the company’s inventory clearance sales.
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