Stein Mart announced Wednesday that the company has voluntarily filed for Chapter 11 bankruptcy. The clothing and home goods retailer made the decision, citing a “challenging retail environment” combined with the impact of COVID-19.
The company plans to close all its brick-and-mortar stores, which will affect more than 9,000 associates. Stein Mart has 12 stores in Dallas-Fort Worth, including one in the Hillside Village Shopping Center. There is no set closing date for any of the locations.
“All stores will stay open during the [Chapter 11] process until such time that merchandise is completely liquidated,” said Linda Tasseff, Stein Mart’s director of external communications and investor relations. “We expect this process to be completed during the fourth quarter, and stores will be closed on a staggered basis.”
Prior to closing stores, Stein Mart plans to cease online operations later this week.
“This was an extremely difficult decision and is deeply disappointing for all of us at Stein Mart,” Tasseff said. “We have loved serving our communities over the years and are so grateful to our loyal customers who chose to shop our stores.”
Stein Mart is one of many retailers, including Pier 1 Imports and J.C. Penny, that have been forced to end operations because of the coronavirus.