Stage Stores Emerging from Bankruptcy; Financing in Place

HOUSTON-Stage Stores Inc. has successfully emerged from a Chapter 11 bankruptcy that has been in the reorganization stage for more than a year.

“Obviously, we are delighted to have completed our restructuring in just over fourteen months,” says Jim Scarborough, Houston-based Stage Stores’ CEO and president. “It has been exciting to be involved in rebuilding a company that has had a long history of success, but it is even more gratifying to know that in doing so, we have saved over 10,000 jobs. None of this could have happened without the continued support from our business partners and valued suppliers.”

Stage Stores has entered into two financing agreements in a bid to lower borrowing costs and provide some flexibility. The agreements provide up to $125 million of working capital and up to $200 million for financing receivable customer accounts. Mike McCreery, executive vice president and CFO, arranged the loans with Citigroup.

According to Stage Store’s reorganization plan, the company handled pre-bankruptcy court debt by issuing a new class of common stock. Additionally, all pre-bankruptcy equity interests such as common and class B stock were cancelled Aug. 24. The company has 342 surviving stores under the Stage, Bealls and Palais Royal names.