Exhibit 99.1
NEWS RELEASE


CONTACT:
Bob Aronson
Director of Investor Relations
800-579-2302
(investorrelations@stagestoresinc.com)


FOR IMMEDIATE RELEASE

STAGE STORES ANNOUNCES
BANKRUPTCY COURT APPROVAL OF
THE ADEQUACY OF THE COMPANY'S
DISCLOSURE STATEMENT IN
SUPPORT OF THIRD AMENDED PLAN
OF REORGANIZATION, AS MODIFIED

HOUSTON, TX, July 2, 2001- - Stage Stores, Inc.
(OTCBB: SGEEQ) announced today that, on June 29, 2001,
the U.S. Bankruptcy Court for the Southern District of
Texas, Houston Division (the "Court") approved the
Company's Amended and Restated Disclosure Statement
Under 11 U.S.C. Section 1125 in Support of Third Amended
Plan of Reorganization, as Modified (the "Disclosure
Statement") as containing adequate information.  As a result
of the Court's approval of the Disclosure Statement, the
Company will commence solicitation of votes from creditors
for approval of the Third Amended Plan of Reorganization,
as Modified (the "Plan").

The Court has scheduled a hearing on August 8, 2001
for consideration and confirmation of the Plan and set
August 1, 2001 as the deadline for filing objections to
confirmation of the plan and for completion and delivery of
the ballots.  In addition, the Court established July 16, 2001
(the "Distribution Record Date") as the record date for the
purpose of determining which creditors may be entitled to
receive distributions under the Plan.  Further, as of the close
of business on the Distribution Record Date, all trading in
the Company's debt instruments and common stock will
permanently cease.

Stage Stores, Inc. brings nationally recognized brand
name apparel, accessories, cosmetics and footwear for the
entire family to small towns and communities throughout the
south central United States.  The Company currently
operates stores under the Stage, Bealls and Palais Royal
names.

Any statements in this release that may be considered
forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ
materially.  These risks and uncertainties are discussed in
periodic reports filed by the Company with the Securities
and Exchange Commission that the Company urges investors
to consider.

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