JACKSONVILLE, Fla. — Stein Mart, Inc., a Jacksonville-based retail company, announced Wednesday that it has voluntarily filed for Chapter 11 bankruptcy.
The company said it plans to close most, if not all, of its stores and has launched a store closing and liquidation process.
Action News Jax news partner WOKV reported that the company 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% and the company had a net loss of $65.7 million. In that same report, the company stated it closed two stores in 2020. All stores reopened by June 15 with reduced hours after being shut because of the COVID-19 pandemic.
“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.”
— - Hunt Hawkins, the Chief Executive Officer and Chief Financial Officer of Stein Mart, Inc.
Marschelle Hardmon loves Stein Mart, on Wednesday she snagged a top for less than $5.
“I love Stein Mart because of the convenience the different types of clothing,” said Hardmon.
The news shocked long-time customers. Hardmon said she relies on Stein Mart as an outlet to not only score great fashion but also to break-up the monotony of quarantine.
“Just when they’re open a little bit that helps out with just being depressed and sitting at the house with nothing to do,” said Hardmon.
The retailer said it’s evaluating all options including the potential sale of its eCommerce business and related intellectual property.
Stein Mart has 281 stores across 30 states. It offers designer and name-brand fashion apparel, home décor, accessories and shoes.
Cox Media Group
