A Stein Mart store in King of Prussia, PA.
The off-price chain Stein Mart announced Wednesday that it has filed for Chapter 11 bankruptcy protection and plans to close most, if not all, of its stores permanently, adding to the turmoil in a retail industry made by the Czech coronavirus pandemic. .
The Florida-based Jacksonville Company said in a press release that it has already launched a liquidation process to start overseas business sales. He said he is evaluating alternatives, including the possible sale of his e-commerce and intellectual property operations.
“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial inconvenience to our business,”; Chief Executive Hunt Hawkins said in a statement. “The company lacks sufficient liquidity to continue operating in the normal course of business.”
Shares of Stein Mart, which are priced below $ 1, sank more than 42% in pre-trading on Wednesday morning. The company has a market cap of $ 14.2 million. Its stock has fallen 56% this year.
Stein Mart operates 281 stores in 30 states in the US, according to its website.
More than 40 retailers have filed for bankruptcy in 2020, including Pier 1 Imports household chain, store operators Neiman Marcus and JC Penney, and clothing brands J.Crew, Brooks Brothers and Ann Taylor-owner Ascena Retail Group. Analysts expect that list to continue to grow in the holiday season, as companies already struggling before the Covid-19 crisis are pushed to the brink.
Some are emerging from their restructuring as smaller businesses, with fewer stores and new owners.
The largest owner of the US center Simon Property Group and clothing licensing firm, Authentic Brands Group, for example, have won a competition to take the Brooks Brothers wealth chain out of bankruptcy and keep at least 125 countries Brooks Brothers.
The bankrupt Sur La Table kitchen accessories chain was bought out of bankruptcy for nearly $ 90 million, with plans to keep at least 50 stores open.
“There is an appetite [for bankrupted retailers] and we’re seeing it, “Perry Mandarino, head of restructuring and co – head of investment banking for B. Riley FBR, said in an interview. “If you have a good brand and if you have a good, loyal customer base, you will have an interest and you will survive.”
Stein Mart has brought Foley & Larder as its restructuring advisor, Clear Thinking Group as its restructuring advisor and PJ Solomon as its investment banker.