Stage Stores Inc. is counting on leeway from vendors to help it avert a bankruptcy filing, according to a report from Reuters.
Stage Stores operates 738 units across several banners, including Gordmans, which it acquired out of bankruptcy in 2017, as well as Bealls, Goody’s and the Stage name.
CEO Michael Glazer and chief merchandising officer Thorsten Weber sent an email Monday to vendors, noting: “We will require concessions from you, our vendor partners. We would not be reaching out to you today if these concession requests were not vital to keeping our company out of Chapter 11.”
Also in their email to vendors, Glazer and Thorsten said Stage Stores’ advisers at investment bank PJ Solomon are looking for a restructuring partner to provide the company with additional funds or to help it refinance its debt.
“We are no different, as we ask you to partner with us on existing payables and support us with shipping on new standard terms…We also recognize that with little or no revenue coming in, you have had to make difficult decisions of your own with your teams and your factory partners.”
Stage Stores said it has reached an agreement with its lenders that allows the company to hold off until April 24 on repayments on a loan, unless it defaults or other events occur, according to a filing with regulators.
Since March 27, the off-price chain – which includes the nameplates Gordmans and Bealls – has had all of its 738 stores closed temporarily (393 of which closed earlier in compliance with state and local regulations) due to COVID-19.
Additionally, the company has furloughed almost all of its stores’ associates, field support staffers and distribution center-based employees, as well as 87 percent of the Houston Support Center team. And it reduced the executive leadership team’s pay by at least 25 percent.
Photo courtesy Stage Stores
