Stage Stores Inc. agreed to sell its Steele’s off-price retail stores to a new retail unit of Hilco Global, a firm which up until now has been primarily involved in monetization of retail and industrial property assets.
The Hilco Global Retail Group is buying Steele’s as an ongoing entity. To assist in the transition, Stage Stores, through its operating subsidiary, Specialty Retailers Inc., will provide certain support services to the ongoing operations of Steele’s for a period of time following the closing of the transaction.
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Under the terms of a purchase and sale agreement, Steele’s & Deals LLC, part of the Hilco Global Retail Group, will acquire the Steele’s retail chain from Stage Stores through a 100% equity purchase.
Upon completion of the transaction, Hilco will take over the responsibility for all but one of the remaining Steele’s real estate leases and will also assume control over the Steele’s buying operation in New York City.
Since its launch in 2011, Steele’s has been positioned in the marketplace as an off-price concept for small town America. Stage Stores operates 35 Steele’s stores in seven states, selling brand name family apparel, accessories, shoes and home décor at deep discounts off department store prices.
“Our Hilco Global Retail Group has the capability and expertise to enhance Steele’s performance, said Michael Keefe, president of Hilco Global. “There are many synergies with our core business which will not only add value to the overall operation, but will also benefit the Steele’s customer by offering at tremendous value, unique products and branded goods in each of the local communities being served.”
Stage Stores Inc. operates primarily in small and mid-sized towns and communities. Its stores brands include Bealls, Goody’s, Palais Royal, Peebles and Stage, all of which offer moderately priced, nationally recognized brand name apparel, accessories, cosmetics and footwear for the entire family.
In addition to its 35 Steele’s stores, the company operates 848 stores in 40 states. The company also has an e-commerce website.
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