Stage Stores furloughs all but 80 employees; reduces exec pay
With all its stores temporarily closed, Stage Stores has furloughed virtually its entire workforce in response to the COVID-19 crisis.
The company, whose transformation into an off-price retailer under the Gordmans banner had hit some snags https://chainstoreage.com/stage-stores-reportedly-eyeing-bankruptcybefore the virus outbreak, has furloughed virtually all employees in its stores, field support roles and distribution centers. Also, 87% of the workforce at its Houston support center have been put on furlough. The retailer said it identified 80 key associates who perform essential functions who are not subject to furlough at this time.
Stage Stores’ furloughed employees will not receive wages. But eligible associates’ health and welfare benefits will continue.
In addition, the company is reducing pay by at least 25% for the members of the executive leadership team. Board members will not receive compensation during this period.
• Stage Stores said it will continue to both explore additional opportunities to reduce costs in the near term and evaluate additional measures to preserve liquidity.
Stage Stores is in the middle of a major reorganization. In September, the retailer, whose brands include Bealls, Goody's, Palais Royal, Stage and Peebles, announced plans to convert its entire store fleet to its off-price Gordmans banner, with a goal of reaching approximately 700 total off-price stores by mid-2020. As part of the overhaul, the company said it expected to close 40 locations during fiscal 2020. (Stage Stores entered the off-price channel in 2017 with its acquisition of Gordmans.)