American discount department store Stein Mart has filed for Chapter 11 bankruptcy. It also intends to permanently shut many of their stores. The retailer is the latest to the growing list of businesses that had severely suffered amid the huge blow of pandemic to many industries.
The Florida-based company announced last week that it is closing “a significant portion, if not all, of its brick-and-mortar stores.” Across the country, they operate over 200 stores, with about 9,000 employees. Stein Mart is a 112 year old company where you can find the stuff they sell at a discount.
In a statement to USA Today, the company said: “Our going-out-of business sale is expected to begin in our stores August 14 or 15. We anticipate all stores will close by the fourth quarter of 2020, with closing dates varying by store.”
Stein Mart, the Florida-based retailer that brought discount decor and clothing to middle- and upper-end neighborhoods, filed for bankruptcy protection today https://t.co/LHxN9cjhK6 pic.twitter.com/auMpxBUlIC
— Forbes (@Forbes) August 12, 2020
More discounts for the discount store
The liquidators stated: “New merchandise arriving in stores, as well as customers’ favorite familiar brands, are deeply discounted and will sell out quickly at these low prices.” They are encouraging shoppers to seize significant discounts of their wide array of merchandise.
Even before the pandemic, Stein Mart was already facing trouble in terms of sales. This health crisis only worsened their situation with forced closures of their stores to curb the spread of the virus.
According to chief exec and CFO for Stein Mart, Hunt Hawkins, the reason for such a move is the combination of the aftermath of “a challenging retail environment” and the coronavirus pandemic.
In an article from the Business Insider, it was reported that Stein Mart saw a drop of 57.3 percent in sales on an annualized basis for the first quarter.
“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,” Hawkins said.