Exhibit 99.1
FOR IMMEDIATE RELEASE
MEDIA CONTACT
Wendy Wall / Helen Vollmer
Vollmer Public Relations
([email protected])
713/546-2230 / 713/857-7605
INVESTOR RELATIONS CONTACT
Jennifer Tweeton
713/970-2134
STAGE STORES ANNOUNCES MAJOR RESTRUCTURING
HOUSTON (June 1, 2000) - - Stage Stores, Inc. (NYSE:SGE) today
filed for protection under Chapter 11 of the United States
Bankruptcy Code. The company commenced its reorganization
proceedings in the United States Bankruptcy Court in Houston,
Texas.
"Because we have taken this most serious step, we believe
Stage Stores will survive and be able to prosper once again,"
said says Jack Wiesner, Chairman, interim CEO, 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 notes. "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. 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.
"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 says. "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 the 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. "Ron has put together a talented
advisory group with extensive legal and financial experience in
reorganizations," Wiesner notes. "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.
Stage Stores is actively seeking a new CEO to lead it back
into profitability. Until that person is on board, Mr. Wiesner
will continue to guide the company, along with an executive
committee consisting of top management in merchandising,
marketing, finance and operations. A board member of Stage
Stores, Mr. Wiesner was CEO of C.R. Anthony Co., a national
apparel chain that Stage Stores acquired in 1997.
Stage Stores, Inc., brings nationally recognized brand name
apparel, accessories, cosmetics and footwear for the entire
family to small towns and communities throughout the United
States. The company currently operates more than over 600 stores
in 33 states, primarily under the Stage, Bealls and Palais Royal
names.
Any statements in this press release that may be considered
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially. These
risks and uncertainties are discussed in periodic reports filed
by the company with the Securities and Exchange Commission that
the company urges investors to consider.
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