Wednesday, August 12, 2020

Steinmart Files Bankruptcy

Steinmart issued the following statement.

Stein Mart, Inc. (NASDAQ: SMRT) today announced that it and its subsidiaries (collectively, the “Company”) have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Middle District of Florida – Jacksonville Division (the “Bankruptcy Court”). The Company has filed customary motions with the Bankruptcy Court that will authorize, upon Bankruptcy Court approval, the Company’s ability to maintain operations in the ordinary course of business, including, among other things, 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. These motions are typical in the Chapter 11 process and the Company anticipates that they will be approved shortly after the commencement of its Chapter 11 case.

Details on the Company’s Chapter 11 process and go-forward strategy are as follows:
  • 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.
Hunt Hawkins, Chief Executive Officer of Stein Mart, Inc., said, “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.”
Additional details:
  • The Company’s restructuring counsel is Foley & Lardner LLP, its restructuring advisor is Clear Thinking Group LLC and its investment banker is PJ SOLOMON.
     
  • Court filings and other documents related to the process are available at https://cases.stretto.com/SteinMart.
About Stein Mart
Stein Mart, Inc. is a national specialty omni off-price retailer offering designer and name-brand fashion apparel, home d├ęcor, accessories and shoes at everyday discount prices. Stein Mart provides real value that customers love every day. The company operates 281 stores across 30 states. For more information, please visit www.SteinMart.com.

Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters discussed herein include statements regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to the future operating performance of the Company and its asset utilization. Investors are cautioned that any such forward looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those in the forward looking statements as a result of various factors.
The Bankruptcy will likely result in holders of our liabilities and/or securities receiving no value for their interests. Because of such possibilities, the value of these liabilities and/or securities is highly speculative and will pose substantial risks. Trading prices for the Company’s common stock may bear little or no relationship to the actual recovery, if any, by holders thereof in the Bankruptcy Case. Accordingly, the Company urges extreme caution with respect to existing and future investments in its common stock. Caution should be taken not to place undue reliance on our forward-looking statements, which represent our view only as of the date hereof, and which we assume no obligation to update.

For more information: Linda L. Tasseff Director of External Communications and Investor Relations ltasseff@steinmart.com (904) 858-2639

Kingfish note: Sad to see. 

19 comments:

Anonymous said...

A Mississippi Institution, founded in Greenville, by the nicest man, Jake Stein. Glad he will not know this.

Anonymous said...

Bankruptcy - the act of not paying your creditors to save yourself while they go out of business.

Anonymous said...

"A Mississippi Institution, founded in Greenville, by the nicest man, Jake Stein. Glad he will not know this."

Couldn't agree more !

However, during the last twenty years . . . that chain was not what it once was.
But that was not Mr. Jake's fault.

Anonymous said...

Sorry to hear of this going on. Shopped in their stores in the past.

Anonymous said...

bankruptcy is a racket and complete buffoonery. It will make you give up on capitalism forever (which its designed to do)

Anonymous said...

Awesome! Time to upgrade the wardrobe at a discount!

Anonymous said...

...what a pleasant surprise...

[pun intended]

Anonymous said...

Hate this for them, but mostly for their employees, who had a job that is no more. Also another large group of empty storefronts across the region. This collapse of retail is very troubling.

Anonymous said...

SteinMart was completely wiped out by COVID. Went to the Jackson location a few weeks ago after they had been closed by the city for weeks. Store was filled with Easter and Spring Merchandise that they never had a chance to sell. There were already 70% markdowns. Tons of stuff on sale on the sidewalks. Was really sad. So I am not surprised by a bankruptcy, and this one will be a complete liquidation, not a bankruptcy where you try to restructure debts.

Anonymous said...

Steinmart's fate is just like many other brick and mortar retailers' business model of selling cheap made shit from China/Asia for high prices. The death spiral started after we quit making the stuff in the U.S. while giving China most favored nation trade status. Amazon plus Covid just sped up the demise.

Anonymous said...

Jackson is lost!!! Next!

Anonymous said...

"...what a pleasant surprise...[pun intended]"

You must not know what a pun is.

Anonymous said...

I’m ILL! Pier One, Tuesday Morning and NOW Stein Mart!
Is there a complete list somewhere of stores and restaurants
that are closing?

Anonymous said...

I bought my first Ralph Lauren Polo Dress Shirt from SteinMart in Greenville. Always enjoyed going through the piles of merchandise. Just like other stores that we grew up enjoying, it is sad to see it go. Online shopping and the pandemic have taken their toll on many businesses.

Anonymous said...

I'm not ashamed to say I shopped there. I don't shop much, but what clothes I do buy come from Sam's, Stein Mart, TJ Maxx, etc. I will miss them.

Anonymous said...

I'm still mourning the loss of Woolworths, Woolco, McRae's, Gayfers, Radio Shack and many others from my youth.

Anonymous said...

For over a decade you could see that this day was coming. Covid or no Covid.
When people started shopping online to avoid paying state taxes or to save a couple of dollars it was evident that brick and mortar stores were at a disadvantage.

Any retailer can tell you stories of customers who would come into their air conditioned space, waste the time of the store employee and try on or touch and feel a product. Then they would go online, using the stores free WIFI, to buy the product elsewhere.

We brought this on ourselves and while you may not care if Steinmart, JC Penny or Sears is around, you will care when your kids and grandkids have no summer employment opportunities.

Anonymous said...

"...what a pleasant surprise...[pun intended]"

"You must not know what a pun is."

And you, my friend, must have never seen a Steinmart commercial...BYE!

Anonymous said...

Let's not feel to badly for the family. The pre-planning has been in effect for a couple of years. Let the employees eat cake. Thirty One Million came out of the change-jug in the conference room.

https://www.yahoo.com/entertainment/stein-mart-jay-stein-drops-161006184.html?soc_src=social-sh&soc_trk=fb

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