Stein Mart files for Chapter 11 bankruptcy protection

Stein Mart, Inc. announced Wednesday that it has filed for Chapter 11 bankruptcy protection.

The Jacksonville-based women’s and men’s apparel company has locations in Aventura, Cooper City, Plantation, Coral Springs and Pompano Beach.

The COVID-19 pandemic has increased the stress on national retailers. Tuesday Morning, J.C. Penney, Neiman Marcus, J.Crew and Stage Stores have all filed for bankruptcy this year.

“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,” Hunt Hawkins, Stein Mart’s CEO and chief financial officer, said in a press release.

“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.

Stein Mart officials expect to close a significant portion, if not all, of its brick-andmortar stores and, have launched a store-closing and liquidation process. Stein Mart will continue to operate its business in the near term.

The bankruptcy filing is intended to allow Stein Mart to maintain operations, including the payment of employee wages and benefits without interruption, payment of suppliers and vendors in the normal course of business, and the use of cash collateral.

Stein Mart was founded in the early 1900s as a single store in Greenville, Miss. It now operates nearly 300 stores in 31 states.