Jacksonville, FL–Stein Mart, Incorporated has begun closing 281 stores after the company and its subsidiaries voluntarily filed for Chapter 11 bankruptcy protection in a U.S. Florida court on August 12.
The 112-year-old, off-price retailer will close 281 of its brick-and-mortar stores across 30 states. The retailer has launched a store closing and liquidation process of its designer and name-brand fashion apparel, home décor, accessories, shoes and fixtures.
The retailer has filed customary motions with a Florida bankruptcy court that will authorize, upon approval, the company’s ability to maintain operations in the ordinary course of business, including the payment of employee wages and benefits without interruption, payment of suppliers and vendors in the normal course of business, and the use of cash collateral. These motions are typical in the Chapter 11 process and the retailer anticipates that they will be approved shortly after the commencement of its Chapter 11 case.
“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus (COVID-19) pandemic have caused significant financial distress on our business,” said Hunt Hawkins, chief executive officer of Stein Mart. “The company has determined that the best strategy to maximize value will be a liquidation of its assets pursuant to an organized going out of business sale. The company lacks sufficient liquidity to continue operating in the ordinary course of business. I would like to thank all of our employees for their dedication and support.”
The retailer is evaluating any and all strategic alternatives, including the potential sale of its eCommerce business and related intellectual property.
