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.
- 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.
- 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.
Stein Mart, Inc. is a national specialty omni off-price retailer offering designer and name-brand fashion apparel, home décor, 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.
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.
19 comments:
A Mississippi Institution, founded in Greenville, by the nicest man, Jake Stein. Glad he will not know this.
Bankruptcy - the act of not paying your creditors to save yourself while they go out of business.
"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.
Sorry to hear of this going on. Shopped in their stores in the past.
bankruptcy is a racket and complete buffoonery. It will make you give up on capitalism forever (which its designed to do)
Awesome! Time to upgrade the wardrobe at a discount!
...what a pleasant surprise...
[pun intended]
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.
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.
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.
Jackson is lost!!! Next!
"...what a pleasant surprise...[pun intended]"
You must not know what a pun is.
I’m ILL! Pier One, Tuesday Morning and NOW Stein Mart!
Is there a complete list somewhere of stores and restaurants
that are closing?
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.
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.
I'm still mourning the loss of Woolworths, Woolco, McRae's, Gayfers, Radio Shack and many others from my youth.
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.
"...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!
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
Post a Comment