The retailer said it would seek buyers for all or parts of its business and begin liquidating inventory as it reopens stores that were closed due to the coronavirus pandemic.
“This is a very difficult announcement and it was a decision that we reached only after exhausting every possible alternative,” said Michael Glazer, president and CEO, in a statement. “Over the last several months, we had been taking significant steps to attempt to strengthen our financial position and find an independent path forward.
“However, the 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. Given these conditions, we have been unable to obtain necessary financing and have no choice but to take these actions,” Glazer added.
Stage Stores said it would reopen 557 of its stores on May 15 and begin selling off inventory. About 67 stores will open during the second phase on May 28, and the balance of the chain is expected to open on June 4.
Stage Stores joins renowned retailers J.Crew and Neiman Marcus, which filed for bankruptcy in the last week. J.C. Penney (JCP) - Get Report could do the same this week, Reuters reported, citing sources.
Like many retailers, Stage has been hurt in recent years by consumers’ shift to online shopping. The coronavirus pandemic also has decimated brick-and-mortar stores, closing many of them and keeping would-be shoppers at home.