Continuously serving Kosciusko County since 1854
Stage Stores Inc. filed for protection under chapter 11 of the U.S. Bankruptcy Code. The company commenced its reorganization proceedings in the U.S. Bankruptcy Court in Houston.
The reorganization will require the closing of underperforming stores. However, when possible, the company will offer other job opportunities to employees whose stores are closing.
The future of Stage in Warsaw is not yet known.
"We won't know which stores will be closing for a few weeks," Kelli Kirkland, public relations representative, said today.
The company is in final discussions for a three-year, $450 million debtor-in-possession credit facility with Citicorp USA Inc. as agent, subject to documentation and bankruptcy court approval. The new facility will refinance certain indebtedness and provide for significant levels of incremental working capital to Stage.
In conjunction with the chapter 11 filing, the company's stock will be subject to "delisting" from the New York Stock Exchange.
Stage Stores Inc. operates more than 600 stores in 33 states, primarily under the Stage, Bealls and Palais Royal names.
