Stein Mart filed voluntary petitions for relief under Chapter 11 bankruptcy in Florida on Wednesday.
The off-price retailer said it expects to close a significant portion, if not all, of its 281 brick-and-mortar stores.
The Jacksonville, Florida-based company said in a press release it has already launched a liquidation process to kick off going-out-of-business sales. It said it is evaluating alternatives, including the potential sale of its e-commerce operations and intellectual property.
“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial distress on our business,” said Hunt Hawkins, chief executive officer of Stein Mart. “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.”