According to an article in the Richmond Times Dispatch, Sage stores which operates Peebles and Gordmans stores in Virginia has filed for bankruptcy. That could mean the chain which has stores in Onley, Exmore and Pocomoke City will close those locations. The chain transitioned the long time Peebles store in Onley to Gordmans with an extended going out of business sale for the Peebles brand.
Stage Stores Inc., which owns the Peebles and Gordmans department store chains, filed for Chapter 11 bankruptcy protection this week.
The Houston-based company said it is searching for a buyer but plans to reopen as early as Friday to begin liquidating its stores. The retailer owns 738 stores in small towns and rural areas in 42 states.
The retailer, which also operates Palais Royal, Bealls and Goody’s stores, said it is soliciting bids to sell the chain as a going concern while also initiating an orderly wind-down of its operations.
If it receives a viable going-concern offer, it will stop the wind-down process at certain locations. Otherwise, Stage Stores will liquidate the whole company.
“This is a very difficult announcement and it was a decision that we reached only after exhausting every possible alternative,” Michael Glazer, the company’s president and chief executive, said in a statement.
“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,” he said. “Given these conditions, we have been unable to obtain necessary financing and have no choice but to take these actions.”
The company plans to begin liquidation sales on Friday at about 557 stores, possibly including the 25 in Virginia.