JONESBORO, Ark. (KAIT) - Stage Stores became the third retailer this month to file for bankruptcy.
The Houston-based company announced Tuesday it had filed Chapter 11 bankruptcy and was seeking potential buyers, according to Talk Business & Politics.
Stage, which operates Gordman’s, Goody’s and others, will begin liquidating stores once they reopen if they are unable to find a buyer.
The company has 21 stores in Arkansas, including Newport, Batesville, and West Memphis; as well as Missouri. They have been closed since late March, with all employees furloughed, due to the COVID-19 pandemic.
The company will begin reopening 557 locations on May 15 with all stores reopened by June 4.
“This is a very difficult announcement and it was a decision that we reached only after exhausting every possible alternative,” Michael Glazer, president and CEO, was quoted as saying.
He went on to say that the company had taken “significant steps” to strengthen its financial position.
“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,” he said. “Given these conditions, we have been unable to obtain necessary financing and have no choice but to take these actions.”
Stage is the third retailer to file for bankruptcy this month, following J. Crew’s filing on May 4, Nieman Marcus filed on May 7.