Discount department store Stein Mart is the latest retailer to hit bankruptcy.
The Jacksonville, Fla., company filed for bankruptcy Wednesday and plans to close most, if not all, of its 281 stores, though it didn’t say which ones. Stein Mart operates 13 locations in Georgia, including stores in Marietta, Peachtree City and Snellville. It also operates a regional distribution center in Lithia Springs.
Stein Mart joins the retail chains Pier 1 Imports, J.C. Penney and Lord & Taylor in bankruptcy court, all slammed by the coronavirus pandemic’s impact on the economy. Many stores were closed for weeks this spring, and store traffic has not returned to pre-pandemic levels.
“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,” CEO Hunt Hawkins said in the release.
Many retailers were already struggling before Covid-19 hit, as shoppers flocked to online commerce. Some mall operators may lease closed stores to Amazon for fulfillment centers.
Stein Mart reported estimated liabilities of $500 million to $1 billion and an equal amount of assets, according to documents filed with the federal bankruptcy court in Jacksonville. It did not provide a timeline for closing stores, though locations remain open for now.
Stein Mart had received a $10 million federal Paycheck Protection Program loan, according to court filings. The federal relief loans were designed to help businesses survive the pandemic.
Stein Mart was founded in Greenville, Miss., in 1908. It sells men’s and women’s clothing, shoes, home décor and other items.
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