>Brookings Oregon News, Sports, & Weather | The Curry Coastal Pilot

News Classifieds Web
web powered by Web Search Powered by Google

News arrow News arrow Business arrow STAGE STORES FILE BANKRUPTCY

Print

STAGE STORES FILE BANKRUPTCY

Sheila Hagbom, manager of the Stage Department Store, remains optimistic that the Harbor store will stay open after the chain filed for bankruptcy Thursday.

The Houston-based chain filed for protection under Chapter 11 of the United States Bankruptcy Code. The company has commenced its reorganization proceedings in the U.S. Bankruptcy Court in Houston.

Because we have taken this most serious step, we believe Stage Stores will survive and be able to prosper again, said Jack Wiesner, chairman, interim chief executive officer and president. Once we reorganize, we will be a stronger company, more focused on our core business. This should result in our becoming a more competitive and profitable company.

Despite the difficulties the company has experienced, Stage Stores basic business concept is viable because the majority of our stores are profitable, Wiesner said. With our Stage, Bealls and Palais Royal stores, we fill an important need by providing brand-name apparel to underserved markets, mostly in small-town America.

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, company officials said.

The new facility will refinance certain indebtedness and provide for significant levels of incremental working capital to Stage, officials said.

In conjunction with the Chapter 11 filing, the companys stock will be subject to delisting from the New York Stock Exchange, officials said.

While this course of action is very strong medicine for our company, filing bankruptcy can have definite positive aspects for our customers, employees and vendors, Wiesner said. Once signed and approved, the debtor-in-possession credit facility will provide a significant line of credit and access to new capital.

Payrolls and benefits will continue. In addition, we have the opportunity to work with our vendors to get the merchandise we need flowing back into our stores.

During its reorganization period, the company has retained the services of Ron Wuensch of Houston to help the company through the Chapter 11 process, officials said.

Ron has put together a talented advisory group with extensive legal and financial experience in reorganizations, Wiesner said. Their expertise will allow for the reorganization process to be as smooth and seamless as possible, with very little effect on our customers and daily operations.

The reorganization will require the closing of underperforming stores, resulting in a stronger core business. However, when possible, the company will offer other job opportunities to employees whose stores are closing, officials said.

Hagbom said the Harbor store has as good of chance of staying open as any other stores. She declined to comment on whether or not the store is profitable.

The company may close anywhere from 100 to 150 stores. The chain has 600 stores in 33 states, officials said.

Stage Stores is actively seeking a new chief executive officer to lead it back into profitability, officials said. Until that person is on board, Wiesner will continue to guide the company, along with an executive committee consisting of top management in merchandising, marketing, finance and operations.

Print

Business News by Yahoo Finance

  • G20 says nearing growth goal, but more needed from Europe
    The Group of 20 leading nations say they are tantalisingly close to adding an extra $2 trillion to the global economy and creating millions of new jobs, but Europe's extended stagnation remains a major stumbling block. The finance ministers and central bank chiefs gathered in the Australian city of Cairns claimed progress on fireproofing the world's financial system and on closing tax loopholes exploited by giant multinationals. They also dealt with the thorny problem of whether to invite Russian President Vladimir Putin to the G20 leaders' summit in November given events in Ukraine, with the consensus being to maintain diplomatic pressure but leave the door open for his attendance. "We are determined to lift growth, and countries are willing to use all our macroeconomic levers – monetary, fiscal and structural policies – to meet this challenge," said Australian Treasurer Joe Hockey, who hosted the event.
  • Dollar's rally bad news for oil, multinationals
    We are now seeing a new uptrend develop,” said Adam Sarhan, founder and CEO of Sarhan Capital in New York. If you’re a large tech company and you do a lot of business overseas, that’s not going to help you,” said Larry Glazer, managing partner at Mayflower Advisors in Boston. Lower oil prices favor the consumer, who can pocket the savings or spend the cash in stores.
  • Alibaba surges 38 percent on massive demand in market debut
    Alibaba Group Holding Ltd's (BABA.N) shares soared 38 percent in their first day of trading on Friday as investors jumped at the chance for a piece of what is likely to rank as the largest IPO in history, in a massive bet on China's burgeoning middle class. It was an auspicious debut for the Chinese e-commerce company, which was founded by Jack Ma in his apartment in 1999 and now accounts for 80 percent of online sales in China. About 100 people gathered outside the New York Stock Exchange at Wall and Broad Streets, many of them Chinese tourists with cameras, and they cheered and snapped photos when Ma exited the building with the kung fu star Jet Li. Some 271 million shares changed hands, more than double the turnover on Twitter Inc's (TWTR.N) first day last year, although still short of volume for the General Motors Co (GM.N) and Facebook Inc (FB.O) IPOs.

Follow Curry Coastal Pilot headlines on Follow Curry Coastal Pilot headlines on Twitter

© Copyright 2001 - 2014 Western Communications, Inc. All rights reserved. By Using this site you agree to our Terms of Use