Home goods retailer Stein Mart
The retailer had taken every measure it could to avoid store closures and bankruptcy, even as pressure mounted amid the pandemic. The firm had previously attempted both a merger with another company, as well as a $10 million Paycheck Protection Plan loan, both of which did nothing to stem the company's financial distress.
Where most of Stein Mart's competitors, such as TJ Maxx
With no other options, Stein Mart opted for bankruptcy. The process of putting the retailer out to pasture is being conducted by a joint venture between several companies, including Gordon Brothers, Hilco Merchant Resources, and Tiger Capital Group, among others. Starting the day after Stein Mart's bankruptcy, the retailer began liquidation sales at its stores, offering deep discounts on all goods.
"New merchandise arriving in stores, as well as customers' favorite familiar brands, are deeply discounted and will sell out quickly at these low prices. We are encouraging shoppers to take advantage of Stein Mart's abundant assortment of merchandise at substantial price reductions before it's too late." Said a representative of the joint venture.
Stein Mart's stock didn't react well to the news of the bankruptcy filing, plunging 32.3% during trading on Thursday, and only recovering a small portion during trading on Friday. Overall, Stein Mart's stock is down over 80% year over year.
- https://www.marketwatch.com/story/here-are-all-the-going-out-of-business-sales-for-112-year-old-stein-mart-stores-2020-08-13
- https://www.tampabay.com/news/business/2020/08/15/its-goodbye-for-stein-mart-the-florida-retailer-will-close-every-store/
- https://www.nasdaq.com/articles/stein-mart-files-for-bankruptcy-protection-update-2020-08-13
- https://www.wishtv.com/news/business/retailer-stein-mart-will-close-its-stores-after-bankruptcy-filing/