One day after Stein Mart filed for bankruptcy, a group of liquidators announced that all 279 of the off-price retailer's stores would close for good.
Going-out-of-business sales have already begun.
"New merchandise arriving in stores, as well as customers' favorite familiar brands, are deeply discounted and will sell out quickly at these low prices," a spokesperson for the liquidators — Gordon Brothers, Hilco Merchant Resources, Tiger Capital Group, B. Riley Financial's Great American Group, and SB360 Capital Partners — said in a press release.
"We are encouraging shoppers to take advantage of Stein Mart's abundant assortment of merchandise at substantial price reductions before it's too late."
Gift cards and rewards can still be used for a limited time. Store fixtures and furniture will also be for sale.
Stein Mart – founded in 1908 – sells clothing, accessories, home decor, and shoes at discounted prices. The company filed for Chapter 11 bankruptcy on Wednesday. It said at the time that it would close "a significant portion, if not all" of its stores.
It also said it could sell its e-commerce business and intellectual property.
"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," CEO and CFO Hunt Hawkins said in a statement on Wednesday.
"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," he added. "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."
The retailer was struggling to revive sales even before the pandemic hit, and temporary closures dragged sales down further.
In the company's first quarter, which would have been most affected by pandemic-related closures, total sales declined 57.3% year-over-year, to $134.3 million. Stein Mart also reported a sales decline in the quarter before the pandemic hit.
