Stein Mart Files For Bankruptcy, May Close NC Stores

NORTH CAROLINA — Following on the heels of other retailers who have suffered setbacks due to the coronavirus pandemic, Stein Mart Inc. announced Wednesday that it has filed for Chapter 11 bankruptcy and may close all of its store including its 20 North Carolina locations.

"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," company CEO and CFO Hunt Hawkins said in a statement.

Several other national retailers have filed for bankruptcy under the Chapter 11 U.S. bankruptcy code, which gives struggling corporations an opportunity to restructure their debts.

Stein Mart is the latest in a series of retailers to file notice under the Chapter 11 bankruptcy code Also filing for bankruptcy is the past several months are Tuesday Morning, JCPenney, Pier 1 Imports, and Men's Wearhouse.

Stein Mart has begun liquidating its assets and Hawkins said the company expects to close "a significant portion, if not all, of its brick-and-mortar stores."

"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," Hawkins said. "The company lacks sufficient liquidity to continue operating in the ordinary course of business."

Based in Jacksonville, the 112-year-old company, which operates 281 stores across 30 states, said it is considering various strategies to remain in business including e-commerce operations.

Original story by D'Ann Lawrence White, Patch Staff