Six Palais Royal and one Beall's outlets in Houston already have been closed as a result of the corporation's Chapter 11 restructuring. Executives had spent all day Tuesday in a closed-door session at the company's corporate offices in Houston as they planned a comeback. They didn't even stop for lunch. They did hire liquidation specialists The Ozer Group and Hilco Merchant Resources to sell off store inventory in those locations tagged for closure. "Under our agreement, we will receive a guaranteed recovery for the inventory, net of related expenses," Jim Scarborough, CEO and president, says in a statement issued by the firm.

Stage once had operated 591 stores in 33 states under the trade names of Palais Royal in the Houston area, Stage Stores in Louisiana, Oklahoma and states north and west, and Beall's mostly in Texas. The firm ran into hard times and filed a Chapter 11 reorganization plan last June.

The store closings, past and planned, will bring the empire down to 348 stores in 14 states, which Scarborough says "will serve as our base for returning the company to profitability." Those that stay fit geographic and demographic profiles identified as niche markets and are positioned in profitable markets. The core group has improved its performance as a result of the restructuring, according to the prepared statement.