Stage Stores prepares for bankruptcy

Department store operator Stage Stores Inc is preparing for a bankruptcy filing that could come as soon as next week, CNBC reported, citing people familiar with the story.

Shares of the company were down 17% in noon trading.

The plans are not definite yet and a potential filing could be delayed or avoided, the report added.

Stage Stores did not immediately respond to a Reuters request for comment.

A bankruptcy filing would mark yet another retailer’s collapse after luxury department store chain Neiman Marcus and apparel retailer J. Crew Group Inc filed for bankruptcy this week.

Many retailers have had to close their stores, furlough employees, suspend dividend and tap into credit facilities to survive the financial hit caused by the lockdowns due to the COVID-19 pandemic.