Stein Mart files for bankruptcy, plans to close most stores for good

The off-price chain Stein Mart announced Wednesday it has filed for Chapter 11 bankruptcy protection and plans to permanently close most, if not all, of its stores, adding to the turmoil in a retail industry that has been hammered by the coronavirus pandemic. 

The Jacksonville, Florida-based company said in a press release it has already launched a liquidation process to kick off going-out-of-business sales. It said it is evaluating alternatives, including the potential sale of its e-commerce operations and intellectual property. 

“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial distress on our business,” Chief Executive Hunt Hawkins said in a statement. “The Company lacks sufficient liquidity to continue operating in the ordinary course of business.” 

Stein Mart operates 281 stores across 30 states in the U.S., according to its website. 

More than 40 retailers have filed for bankruptcy in 2020, including the home-goods chain Pier 1 Imports, department store operators Neiman Marcus and J.C. Penney, and apparel brands J.Crew, Brooks Brothers and Ann Taylor-owner Ascena Retail Group. Analysts expect that list to continue to grow into the holiday season, as companies that were already struggling before the Covid-19 crisis are pushed over the edge. 

Stein Mart has brought on Foley & Larder as its restructuring counsel, Clear Thinking Group as its restructuring advisor and PJ Solomon as its investment banker. 

This story is developing. Please check back for updates.