The romance continued Sunday evening between Jackson Walker and Kirkland & Ellis as the bankruptcy duo filed a Chapter 11 corporate restructuring petition on behalf of Houston-based department store chain Stage Stores.
The company said in a press release that it will “simultaneously solicit bids” for a sale of the business or any of its assets while it initiates “an orderly wind-down of operations,” but that the company will “terminate the wind-down operations at certain locations if it receives a viable going-concern bid.”
Stage Stores operates department stores Palais Royal, Bealls, Goody’s and Peebles as well as Gordmans, the off-price brand that Stage Stores was converting all of its other brand names into and was acquired out of bankruptcy a few years ago. Stage’s bankruptcy is the latest in the flurry of retailers that are heading to the courts for corporate reorganization amid the COVID-19 pandemic.
Kirkland & Ellis is serving as Stage Stores’ lead counsel for the bankruptcy, but the Chapter 11 filing was submitted by Houston Jackson Walker partner Matthew Cavenaugh, who has served as local counsel for a number of bankruptcies being led by Kirkland. The most recent example was the long-anticipated filing of Neiman Marcus, which the duo also filed in Houston federal court.
Leading the Kirkland team are New York restructuring partner Josh Sussberg and Chicago restructuring associate Josh Altman.
Kirkland is also representing Oklahoma City-based Chesapeake Energy in its impending bankruptcy, which could be filed this week, according to lawyers familiar with the matter. Jackson Walker is also believed to be working with Kirkland on the Chesapeake filing.
Stage Stores has hired David Shiffman of PJ Solomon as its investment banker and Steve Coulombe of Berkeley Research Group as its restructuring advisor. A&G Realty is serving as Stage Stores’ real estate advisor, while Gordon Brothers Retail Partner will manage the company’s inventory clearance sales.
For full details on the Stage Stores bankruptcy, visit a report by our partners at the Houston Chronicle here.
Claire Poole contributed to this report.