Stein Mart Files for Bankruptcy; May Close All 281 Stores
Stein Mart has announced that it has filed voluntary Chapter 11 bankruptcy and may close all 281 stores. Locally, it has stores on Vaughn Road in Montgomery and at the Auburn Mall in Auburn.
It is seeking the ability to maintain operations, paying employees, suppliers and vendors and use of its cash collateral.
In the company’s announcement, it says it expects to close a significant portion, if not all, of its brick-and-mortar stores and has launched a store closing and liquidation process.
It is evaluating any strategic alternatives, including the potential sale of its eCommerce business and related intellectual property. The company is based in Jacksonville, Florida.
Hunt Hawkins, Chief Executive Officer of Stein Mart, Inc., said, “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. 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.”