Stein Mart Files Chapter 11 Bankruptcy Plans To Close Stores
We got the news back in May that Tuesday Morning would be closing due to the COVID-19 pandemic, and now Stein Mart revealed Wednesday that they would be voluntarily be filing Chapter 11 bankruptcy.
According to the press release from Stein Mart,
The Company expects to close a significant portion, if not all, of its brick-and-mortar stores and, in connection therewith, the Company has launched a store closing and liquidation process. The Company, however, will continue to operate its business in the ordinary course in the near term; and The Company is evaluating any and all strategic alternatives, including the potential sale of its eCommerce business and related intellectual property.
According to Chief Executive Officer, Hunt Hawkins, “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."
"The Company 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. The Company lacks sufficient liquidity to continue operating in the ordinary course of business. I would like to thank all of our employees for their dedication and support.” Hawkins said.