ST. PETERSBURG, Fla. -- The discount department store chain Stein Mart filed for bankruptcy on Wednesday after 112 years in business, announcing that it will close most, if not all, of its stores.
"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," Chief Executive Officer Hunt Hawkins said in a news release. "The Company lacks sufficient liquidity to continue operating in the ordinary course of business."
Based in Jacksonville, Fla., Stein Mart has more than 280 stores in 30 states. The company specializes in clothing, shoes and housewares at discount prices, and many of the stores are located in community shopping centers. As of May 30, the company employed about 8,400 people.
Hawkins said Stein Mart will continue to operate normally "in the near term" and is evaluating the potential sale of its e-commerce business. A going-out-of-business sale will begin Friday or Saturday, according to spokeswoman Linda Tasseff. She said she anticipates all stores will shut by the fourth quarter of 2020, with closing dates varying by store.
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"Please know that this was an extremely difficult decision, and is deeply disappointing for all of us at Stein Mart," Hawkins said. "We have loved serving our communities over the years and are so grateful to our loyal customers who chose to shop our stores."
Stein Mart closed its businesses in mid-March because of the pandemic. It began reopening in April, and it eventually reopened all of its stores with reduced hours. It borrowed $10 million in June under the federal Paycheck Protection Program.
The company first started doing business in 1908 in Mississippi.
The Chapter 11 filing in Florida gives the company some breathing space while it works out a plan to repay creditors. It has asked for court approval to continue paying its employees and vendors, according to the statement.
More then 40 retailers have filed for Chapter 11 this year, including more than two dozen that have filed since the pandemic began. Last year, 23 retailers filed for Chapter 11.
Among those that have filed this year are Lord & Taylor, America's oldest retailer; J. Crew; J.C. Penney; Neiman Marcus; Tailored Brands, the owner of Men's Wearhouse and Jos. A. Bank; Stage Stores; and Ascena Retail Group, which owns Lane Bryant and Ann Taylor.
Stein Mart shares fell 38.5% in New York on Wednesday.
Information for this article was contributed by Richard Clough and Jeremy Hill of Bloomberg News.
