- The off-price retailer Stein Mart has filed for Chapter 11 bankruptcy protection and plans to shutter most of its stores.
- Stein Mart operates 281 stores across 30 states in the U.S., according to its website.
- More than 40 retailers have filed for bankruptcy so far this year, according to a tracking by S&P Global Market Intelligence.
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 that 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 shares, which are priced under $1, sank 35% in afternoon trading Wednesday. The company has a market cap of $9.1 million. Its stock has tumbled more than 70% this year.
Stein Mart operates 281 stores across 30 states in the U.S., according to its website.