Stein Mart is the latest retailer to file for bankruptcy and announce plans to shutter most – if not all – its stores.
The Jacksonville, Florida-based retailer announced Wednesday it had filed for Chapter 11 in the Middle District of Florida. It will close “a significant portion, if not all, of its brick-and-mortar stores” with liquidation sales starting soon. A date for those sales has not been announced.
The company said it is evaluating alternatives that include the potential sale of its e-commerce business.
Stein Mart CEO Hunt Hawkins said ongoing declines in retail sales coupled with coronavirus shutdowns led to the issues.
“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial distress on our business. 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,” Hawkins added.
The chain operates almost 300 stores across 30 states, including 8 in Alabama.