Stein Mart Inc. has filed for bankruptcy with plans to permanently close all or most stores, becoming the latest distressed retailer to succumb to the economic fallout caused by restrictions due to the coronavirus pandemic, WSJ Pro Bankruptcy reported. The discount department-store chain, which has locations nationwide, filed for chapter 11 protection on Wednesday in U.S. Bankruptcy Court in Jacksonville, Fla. Stein Mart said it is evaluating strategic alternatives, including the potential sale of its e-commerce business and related intellectual property. The decision to file for bankruptcy comes after the publicly traded company raised substantial doubt in June about its ability to stay in business over the next 12 months due to the pandemic’s adverse effects on revenue, operations and cash flow. Stein Mart’s sales had been under pressure since 2016, but COVID-19 further hurt the company’s business due to lower in-store traffic that strained its credit facilities, as it borrowed seasonally higher amounts to cover cash shortfalls from lower sales.
