NEWS RELEASE			Exhibit 99.1


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


FOR IMMEDIATE RELEASE

STAGE STORES ANNOUNCES
EMERGENCE FROM BANKRUPTCY

HOUSTON, TX, August 24, 2001- - Stage Stores,
Inc. (OTCBB: SGEEQ) announced today that it had
completed the steps necessary to make effective the
Company's Plan of Reorganization (the "Plan").
Accordingly, the Company has emerged from the
supervision of the Bankruptcy Court under which it had
operated since filing for bankruptcy protection on June 1,
2000.

"Obviously, we are delighted to have completed our
restructuring in just over fourteen months," said Jim
Scarborough, CEO and President.  "It has been exciting to be
involved in rebuilding a company that has had a long history
of success, but it is even more gratifying to know that in
doing so, we have saved over 10,000 jobs.  None of this
could have happened without the tremendous dedication of
our employees and the continued support from our business
partners and valued suppliers."

In connection with its emergence, the Company also
announced it has entered into two separate financing
agreements.  One agreement provides up to $125 million for
working capital financing while the second agreement
provides up to $200 million for financing customer accounts
receivable.  "These agreements will lower our borrowing
costs and provide the Company with the capacity and
flexibility it needs to execute our business plan," stated Mike
McCreery, EVP and Chief Financial Officer.  Citigroup
acted as agent in arranging both financing agreements.

A complete copy of the Plan, which had been
confirmed by the Bankruptcy Court on August 8, 2001, was
filed by the Company with the Securities and Exchange
Commission as an Exhibit to a Form 8-K on August 16,
2001.  The Plan sets forth the treatment for pre-petition
creditors and existing holders of the Company's Common
Stock and Class B Common Stock.  Under the Plan, the
Company generally settled pre-petition debt claims by
issuing a new class of common stock in the reorganized
company to those pre-petition creditors entitled to receive
such distribution under the Plan.  The Plan did not provide
for any distribution to the holders of pre-petition equity
interests in the Company, including holders of the
Company's Common Stock (OTCBB trading symbol of
SGEEQ) or to the holders of the Company's Class B
Common Stock.  As provided in the Plan, all pre-petition
equity interests, including all shares of currently outstanding
Common Stock and Class B Common Stock, are cancelled
on the Effective Date, August 24, 2001.

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 a total of 342 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.