Stein Mart files for bankruptcy; to close nearly 300 stores, Retail News, ET Retail

Stein Mart files for bankruptcy to close nearly 300 storesST. PETERSBURG, Fla. : National price reduction department shop chain Stein Mart submitted for personal bankruptcy on Wednesday right after 112 years in business, and introduced that it will close most, if not all, of its 280 outlets.

“The blended effects of a challenging retail natural environment coupled with the impression of the Coronavirus (COVID-19) pandemic have brought about considerable financial distress on our business,” wrote Main Govt Officer Hunt Hawkins in a news launch. “The Business lacks ample liquidity to go on running in the ordinary class of business.”

Headquartered in Jacksonville, Florida, Stein Mart has additional than 280 outlets in 30 states specializing in garments, sneakers and housewares at price reduction costs. Lots of of the outlets are found in neighborhood searching facilities. As of May perhaps 30, the enterprise used about 8,400 individuals.

Hawkins explained Stein Mart will go on to work commonly “in the near term,” and is analyzing the probable sale of its eCommerce business. A going-out-of-business sale will start off Friday or Saturday, in accordance to spokeswoman Linda Tasseff, who explained she anticipates all outlets will close by the fourth quarter of 2020, with closing dates various by shop.

“You should know that this was an extremely tough choice, and is deeply disappointing for all of us at Stein Mart,” Hawkins explained in a published assertion. “We have loved serving our communities in excess of the years and are so grateful to our loyal customers who chose to shop our outlets.”

Stein Mart closed its enterprises in mid-March mainly because of the pandemic. It started reopening in April, and ultimately reopened all of its outlets with minimized several hours. It borrowed $ten million in June beneath the federal Paycheck Protection Program. The enterprise to start with began performing business in 1908, in Mississippi.

A lot more then 40 merchants have submitted for Chapter 11 this 12 months, which include additional than two dozen merchants who submitted considering that the pandemic started. Final 12 months, 23 merchants submitted for Chapter 11.

Amongst them: America’s oldest retailer, Lord & Taylor J. Crew J.C. Penney Neiman Marcus Men’s Wearhouse Jos. A. Financial institution Phase Stores and Ascena Retail Group, which owns Lane Bryant and Ann Taylor.