Exhibit 99.1

FOR IMMEDIATE RELEASE                              MEDIA CONTACT
                                                   Wendy Wall
                                                   Vollmer Public Relations
                                                   (Wendy@vollmerpr.com)
                                                   713/546-2230

                                                   INVESTOR RELATIONS CONTACT
                                                   Bob Aronson
                                                   800-579-2302

           STAGE STORES ANNOUNCES NEW CREDIT AGREEMENT

     HOUSTON,  TX,  June  7, 2000 - - Stage  Stores,  Inc.  today
announced  a three year $450 million debtor-in-possession  credit
agreement  with  CITICORP USA, INC. as agent.  The  company  also
announced  that  the credit agreement was approved  by  the  U.S.
Bankruptcy Court for the Southern District of Texas in an interim
order  dated June 2, 2000.  The interim order approved borrowings
of up to $385 million.
     Jack Wiesner, Chairman, interim Chief Executive Officer  and
President,  commented,  "This new credit agreement  provides  the
company with significant liquidity to help ensure we can meet all
of our financial obligations in the ordinary course of business."
      Stage Stores, Inc., brings nationally recognized brand name
apparel,  accessories,  cosmetics and  footwear  for  the  entire
family  to  small  towns  and communities throughout  the  United
States.  The company currently operates more thanover 600  stores
in  33 states, primarily 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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