Atlanta, Georgia 2020-08-12 15:21:00 –
JACKSONVILLE, Fla. (CBS46) — Retail chain Stein Mart announced Wednesday it and its subsidiaries filed for Chapter 11 bankruptcy and is planning store closings.
The company, which employs more than 8,000 workers, said it plans ‘to close a signficiant portion, if not all, of its brick-and-mortar stores,” and that it has started a store closing and liquidation process.
“The combined effect of a challenging retail environment coupled with the impact of the Coronavirus (COVID-19) pandemic have caused significant financial distress on our business,” said Stein Mart CEO Hunt Hawkins. “The compnay 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 the company doesn’t have liquidity to continue operating “in the ordinary course of business” and thanked employees for their work.
Stein Mart joins a long list of retailers filing bankruptcy this year including J.C. Penney, Pier 1, Brooks Brothers, Lord & Taylor, and Neiman Marcus among many others.
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