Stage Stores Inc. is preparing for a financial restructuring that could include a bankruptcy filing as the discount retailer contends with persistent losses at its department store outlets, WSJ Pro Bankruptcy reported. The publicly listed, Houston-based company has recently been late in paying its vendors amid a liquidity squeeze. The company is likely to file for chapter 11, although the situation remains fluid and Stage Stores could complete an out-of-court debt restructuring process, according to the people. The company is working with Joshua Sussberg, a restructuring lawyer at the law firm Kirkland & Ellis, the people said. It is also working with real estate advisory firm A&G Real Estate Partners, said one of the people, as well as consulting firm Berkeley Research Group. Stage Stores operates several department store brands, including Gordmans, Bealls and Goody’s. The company is working on converting substantially all of them into off-price Gordmans outlets and planned to close 40 stores in fiscal 2020. It aims to operate a total of 700 off-price stores by the third quarter of fiscal 2020. Stage Stores acquired Gordmans out of bankruptcy in 2017.
