Stein Mart expects to close most, if not all, of their stores

JACKSONVILLE, Fla. — The Jacksonville-based company, Stein Mart, Inc., has filed for bankruptcy after they experienced financial loss continuously since 2019.

Stein Mart had a net loss of $10.5 million in the fiscal year of 2019. Stein Mart’s total sales in the first quarter of 2020 dropped 57.3 percent and the company had a net loss of $65.7 million. In that same report, the company stated they closed two stores in 2020. All stores re-opened by June 15 with reduced hours after being shut because of the COVID-19 pandemic.

In the filing, the company states that they expect close most, if not all, of their in-person stores. Stein Mart has 281 stores. They have launched a liquidation and store closing process. According to the press release, the company plans to continue to operate business and is looking at a potential sale of its online business and related intellectual property.

“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,” the Chief Executive Officer and Chief Financial Officer of Stein Mart, Hunt Hawkins, said.

Stein Mart was one out of seven Jacksonville companies that was given a $5 to $10 million Paycheck Protection Program loan. They did not specify how many employees they retained on their loan application.

Cox Media Group