Bealls/Gordman’s Files for Bankruptcy

Stage Stores, Inc. (the owner of the former Bealls location in La Grange that was transitioning to Gordman’s) announced Sunday that the company has filed voluntary petitions under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division. The Company will simultaneously solicit bids for a going concern sale of the business or any of its assets and initiate an orderly wind-down of operations. The Company will terminate the wind-down of operations at certain locations if it receives a viable going-concern bid.

The health and safety of its associates and guests remains Stage Stores’ top priority as it takes a phased approach to reopening its stores in the coming weeks to commence the liquidation of its inventory. The Company currently anticipates that the first phase of approximately 557 stores will open on May 15, the second phase of approximately 67 stores is expected to open on May 28 and the balance of the chain is expected to open on June 4. The Company will provide updates as to the location and timing of stores that are opening on its website, www.gordmans.com, in due course.

Michael Glazer, President and Chief Executive Officer, commented, “This is a very difficult announcement and it was a decision that we reached only after exhausting every possible alternative. 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.”