Stage Stores

Stage Stores is a department store company specializing in retailing off-price brand name apparel, accessories, cosmetics, footwear, and housewares throughout the United States. Stores can be found in shopping malls and centers or in standalone locations.The corporate office is located in Houston, Texas.[4]

Stage Stores, Inc.
Specialty Retailers, Inc.
Public
Traded asOTC Pink: SSINQ
Russell Microcap Index component
IndustryRetail
FateChapter 11 bankruptcy
Founded1988 (1988)
Defunct2020 (2020)
HeadquartersHouston, Texas
Number of locations
786 (2019)[1]
236 (by 2020 or 2021)
Key people
William J. Montgoris (Non-Executive Chairman)
Michael L. Glazer (President, CEO)
Steve Williams (CIO)
ProductsApparel, Accessories, Cosmetics, Footwear, and Housewares
Revenue US$1.64 billion (2019)[2]
US$−87.9 million (2019)[2]
Total assets US$794.25 million (2019)[3]
Total equity US$254.53 million (2019)[3]
Number of employees
13,600 (Feb. 2019)[1]
Websitestage.com

Stage Stores operates 782 department stores in 42 states, almost all of which either are or will soon be operated under its flagship brand, Gordmans, which it acquired in 2017. Historically, Stage Stores operated full-price retail outlets under the Bealls, Palais Royal, Peebles, Stage, and Goody's nameplates before transitioning away from that business model and toward an off-price positioning in 2019 and 2020.

On May 11, 2020, Stage Stores announced it had filed for Chapter 11 bankruptcy after failing to find a buyer for the chain. The company had suffered poor sales in the 2019 holiday season, and after the onset of the COVID-19 pandemic and the ensuing retail shutdowns that began in March 2020, Stage Stores was unable to secure financing that would allow the continued operation of the chain. The company said that it would begin inventory liquidation sales at stores as soon as they could reopen.[5][6][7]

Exclusive brands of the company include Valerie Stevens, Signature Studio, Sun River, Rustic Blue, Rebecca Malone, and Wishful Park.

Chains
  • Stage Stores: South Central-based (department store)
  • Bealls: Texas-based (department store)
  • Palais Royal: Texas-based (department store)
  • Peebles: Eastern and upper midwestern areas of US. (department store)
  • Gordmans: Midwestern-based (off-price department store)
  • Goody's: Southeastern-based (department store)

History

Through a series of acquisitions the company grew to 793 stores as of July 29, 2017.

In June 1992, Stage Stores, then known as Specialty Retailers, Inc. (SRI), acquired Colorado-based Fashion Bar, Inc., a family-owned business with 71 stores, most of which were comparable to Palais Royal and Bealls. The remainder were small specialty stores known as Stage Stores, which had already become part of SRI's operation.

In 1996, SRI completed the closure of the other Fashion Bar Stores but retained the Stage name. The company purchased the forty-nine stores of Beall-Ladymon, Inc., sold by company president Horace Ladymon. The outlets were located in Arkansas, Kansas, Louisiana, and Mississippi; they were reopened in 1994 under the "Stage" name.[8]

Stage expanded into the Northwest with the acquisition in 1997 of C. R. Anthony Co. and Tri-North stores.

The company acquired Uhlmans in 1997, which brought Stage to Michigan, Illinois, and Indiana. All of these newly acquired stores, however, were closed by 1999 when Stage Stores filed for Chapter 11 bankruptcy. Closures as part of the bankruptcy included most of the former Fashion Bar, Milliken's, Tri-North, and Uhlman's stores, as well as an exodus from Wisconsin, Michigan, and Minnesota.

In 2003, Stage Stores acquired 136 Peebles stores located in 17 states.

The company purchased the Goody's name through the Goody's bankruptcy auction in 2009. The nameplate was used in markets with a strong customer awareness and brand recognition of the name.[9]

In 2011, Stage Stores began a new chain called Steele's,[10] but in March 2014 it was announced that these stores are being sold to Hilco Global.[11]

Stage Stores acquired the Gordmans' assets in March 2017 after becoming the winning bidder in a bankruptcy sale. The company announced that it planned to run at least 50 stores and one of Gordmans’ distribution centers.[12] Under the direction of Stage Stores, Gordmans began to transition away from the specialty department store business model, moving the brand to the off-price retail sector, more resembling stores like T.J. Maxx, Ross, and Burlington. As part of expanding the brand, Stage Stores opening their first new Gordmans store in Rosenberg, Texas in March, 2018.[13]

In March, 2019, Stage announced that by mid-2020 they planned to convert at least 220 of their current department stores, including those of other brand names, into Gordmans off-price stores. CEO Michael Glazer cited the high sales increases in the locations that were converted in 2018 as the deciding factor in the decision.[14] In September, 2019, Stage Stores announced that they planned to completely exit the department store market, moving completely to the off-price model, converting all other stores brands to the Gordmans brand, and operating approximately 700 Gordmans stores by the third quarter of fiscal 2020 (August-October).[15]

In May 2020, Stage Stores filed for Chapter 11 bankruptcy, even though the ongoing conversions had resulted in same-store sales rising more than 17% in the November-January fiscal quarter. [16]

Acquisitions

Stage Stores, Inc. has acquired many stores over the years, including the following:

Future and bankruptcy

On September 17, 2019, Stage Stores announced plans to convert all remaining Stage, Bealls, Palais Royal, Peebles, and Goodys department store locations into Gordmans stores by the end of 2020.[18] This would mean that Stage Stores would completely exit the department store market and instead go all in as an off-price retailer.

By the end of fiscal year 2020, Stage planned to operate approximately 700 Gordmans Stores. CEO Michael Grazer cited the high sales increases in locations that had already been converted as the main factor in this decision.

After the COVID-19 pandemic caused most of its stores to temporarily close, Stage Stores announced that it would enter bankruptcy proceedings and liquidate its inventory, except for individual stores for which it could find a buyer.[7][5][6]

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References
  1. "Stage Stores Company Profile". 12 December 2019.
  2. "Stage Stores Inc. Annual Income Statement". www.marketwatch.com.
  3. "Stage Stores Inc. Annual Balance Sheet". www.marketwatch.com.
  4. "Company Profile." Stage Stores. Retrieved on December 14, 2009.
  5. "Discount retailer Stage Stores files for bankruptcy". The Wall Street Journal. (via Fox Business). 11 May 2020. Retrieved 11 May 2020.
  6. Remkat, Rama (11 May 2020). "Stage Stores files for bankruptcy as pandemic chokes sales". Reuters. Retrieved 11 May 2020.
  7. Takahashi, Paul (11 May 2020). "Stage Stores files for Ch. 11 bankruptcy, latest retailer felled by coronavirus". Houston Chronicle. Retrieved 11 May 2020.
  8. Ford, Kelly (September 26, 1994). "Beall-Ladymon stores change hands". Arkansas Business'. Retrieved June 12, 2014.
  9. Harrington, Carly (July 9, 2009). "Goody's name, logo sold". Knoxville News Sentinel. Archived from the original on 2009-07-12. Retrieved 2019-10-24.
  10. "Stage Stores Announces the Launch of Steele's, Its New Off-Price Concept". Business Wire. 11 October 2011. Retrieved 2 April 2013.
  11. "Stage Stores Announces the Sale of its Steele's Off-Price Division to the Hilco Global Retail Group". Hilco Global. 2014-03-06. Retrieved 2014-03-29.
  12. "Some Gordmans department stores bought by rival, will remain open". The Denver Post. Associated Press. 2017-03-30. Retrieved 2019-10-24.
  13. Takahashi, Paul (22 March 2018). "Stage Stores shopping for bargain hunters in Rosenberg". HoustonChronicle.com.
  14. Ryan, Tom (March 12, 2019). "Stage Stores converts to an off-price future – RetailWire". RetailWire. Retrieved 2020-05-12.
  15. "Stage Stores Announces Total Company Conversion to Off-Price". www.businesswire.com. 2019-09-17. Retrieved 2020-05-12.
  16. Bhattarai, Abha (May 11, 2020). "Stage Stores files for bankruptcy, says it will liquidate more than 700 stores if it can't find a buyer". Philadelphia Inquirer. Retrieved 2020-05-12.
  17. Stage/Milliken closing in next three months Archived, Traverse City Record-Eagle, January 4, 2001.
  18. "Stage Stores Announces Total Company Conversion to Off-Price". www.businesswire.com. 2019-09-17. Retrieved 2019-10-24.
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