Stein Mart has filed for Chapter 11 bankruptcy and will close most, if not all, of its stores.
The company said in a press release Wednesday that it has already begun the liquidation process.
“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial distress on our business,” Chief Executive Hunt Hawkins said. “The Company lacks sufficient liquidity to continue operating in the ordinary course of business.”
The discount department store is just the latest in a series of companies to succumb to the economic strain created by the coronavirus pandemic. Other major brands, including Neiman Marcus, J.C. Penney, and J Crew, have also filed for bankruptcy.
But one expert said there is still hope for the stores.
“There is an appetite [for bankrupted retailers] and we are seeing it,” Perry Mandarino, head of restructuring and co-head of investment banking for B. Riley FBR, told CNBC. “If you have a good brand and if you have a good, loyal customer base, you will have interest and you will survive.”
