Business

Retail Ecommerce Ventures Acquires Bankruptcy Stein Mart for $ 6 Million

The company that gave Pier 1 Imports, Dressbarn, and Modell’s Sporting Goods a second chance of living online has added another perplexed retailer to the empire: Stein Mart.

Miami-based retail e-commerce ventures have emerged as winners of Steinmart’s intellectual property bankruptcy court auction, the company announced Wednesday. We plan to pay $ 6.02 million for Steinmart nameplates, our own brands, domain names, social media assets and other customer data.

Stain Mart, based in Jacksonville, Florida, filed for Chapter 11 Bankruptcy Protection in August, but eventually closed all 281 stores.

Founded last year by CEO Alex Mail and executive Thai Lopez, REV is an off-price apparel and household goods business that has been competing with Ross Stores, household goods, Marshall, Burlington Stores and others. Will be resumed online. Please keep it only early next year.

The US discounted pricing sector benefits from shoppers who enjoy the thrill of digging into piles of merchandise to find bargains. But Covid’s pandemic has hit these retailers, including Steinmart, who was already struggling to overhang debt. After that, sales were exhausted due to the temporary closure in spring.

REV expects low-priced retailers to make a strong recovery after the widespread availability of the Covid-19 vaccine. And Wall Street seems to share this sentiment as stocks of reduced retailers are rising. TJX shares increased 27% from a month ago, and Los Angeles shares increased 30%. Burlington shares rose almost 14% last month.

“Whenever I see a big £ 800 gorilla competitor like TJ Maxx, I know they’re doing something right,” said REV Lopez. “We want to be a kind of online version.”

However, low-priced retailers are slow to move online. Marshall, owned by TJX, did not launch a website until last year. And last month, TJX announced that it would add an e-commerce site for the HomeGoods furniture chain in 2021.

According to Lopez, REV wants to adapt to this growing digital environment by leveraging the loyal foundation of Steinmart’s customers in Southeast, Texas, Arizona and California, where its stores were primarily based. I think.

“It’s multi-generational,” he said. “Steinmart is definitely well known.”

The advantage of REV is its e-commerce experience. Building a portfolio of fallen retail brands and living a new life on the internet.

Covid’s pandemic has boosted many retailers who are already suffering from bankruptcy, so there are many brands to choose from. REV has purchased Pier 1 Imports’ e-commerce business and Modell’s Sporting Goods trademark assets. It also owns Dressbarn, Linens’n Things, collection retailer Franklin Mint, and the UK-based bookstore The Book People.

In November, we purchased RadioShack brand rights in the US, Canada, India, Australia, Europe and China and related websites for a private amount.

According to REV, the company’s brand currently makes over $ 1 billion in sales each year.

“I’ve always been a big fan of Warren Buffett, and his strategy is to get what’s already there, rather than building from scratch,” Lopez said. “And in 2019, we started seeing what was written on the wall in the so-called retail apocalypse.”

REV isn’t the only way to bid on a needy retailer. But for now, it sticks to online-only trading.

“We haven’t been much on the road to understanding bricks and mortar,” Lopez said. “There’s a lot to do online. Look at Amazon.”

This is unlike Authentic Brands Group, an apparel licensing company that partnered with Simon Property Group, the largest mall owner in the United States, to acquire Lucky Brand and Brooks Brothers from bankruptcy this year. ABG also owns brands such as Juicy Couture and allows them to be sold at other retail stores.

Lopez said he was considering other deals and was hoping for an opportunity to buy after the holidays.

“Retailers are going to see the number of their holidays and they are due for all these leases,” he said. “No doubt blood will flow down the street again.”

Retail Ecommerce Ventures Acquires Bankruptcy Stein Mart for $ 6 Million

Source link Retail Ecommerce Ventures Acquires Bankruptcy Stein Mart for $ 6 Million

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