Stage Stores Inc filed for Chapter eleven individual bankruptcy late on Sunday, the most current casualty of the coronavirus pandemic subsequent the collapse of luxury shop chain Neiman Marcus and apparel retailer J. Crew Team Inc.
The discounted section shop operator will seek bids for the business or any of its belongings, although it also commences to wind down its functions, Stage Stores mentioned in a statement.
The organization detailed both of those belongings and liabilities between $five hundred million and $one billion, according to a submitting with the U.S. Personal bankruptcy Court docket for the Southern District of Texas.
“The progressively difficult industry surroundings was exacerbated by the COVID-19 pandemic, which needed us to briefly shut all of our merchants and furlough the extensive the greater part of our associates,” Main Government Officer Michael Glazer mentioned in a statement.
“Specified the conditions, we have been unable to get required funding and have no choice but to get these actions.”
Houston, Texas-dependent Stage Stores was trying to find to stay away from individual bankruptcy by asking distributors for far more time to fork out expenditures and other concessions, Reuters reported final month.
The organization shut all its 738 merchants and 3 distribution centers in March, together with other “non-necessary” stores, as aspect of attempts to suppress the distribute of the novel coronavirus all through the United States.
Stage Stores mentioned it now expects to reopen about 557 merchants on May well fifteen, about sixty seven merchants in the next period by May well 28 and the relaxation by future month.
The organization also mentioned Main Financial Officer Jason Curtis is leaving the organization, productive May well 22, to go after a profession with a different retailer and that CEO Glazer would oversee the finance operate.
Kirkland & Ellis LLP acted as authorized adviser to Stage Stores and PJ Solomon was its investment decision banker. Berkeley Investigate Team LLC served as restructuring adviser.