Stein Mart is shuttering all 279 of its stores across 30 states, the company said Thursday morning, hiring five firms to help it with the going-out-of-business process.
Merchandise will be discounted by 30% off the lowest ticketed price, Stein Mart said in a statement.
In Arizona Stein Mart has eight stores across the Valley and two stores in Tucson.
The sale of the retailer’s remaining merchandise as well as store fixtures, furniture and equipment will be handled by a joint venture formed by Gordon Brothers, Hilco Merchant Resources, Tiger Capital Group, B. Riley Financial's Great American Group and SB360 Capital Partners
The company touted its “dorm room necessities” and other items as being likely to sell quickly.
"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 joint venture stated. "We are encouraging shoppers to take advantage of Stein Mart's abundant assortment of merchandise at substantial price reductions before it's too late."
Stein Mart gift cards and loyalty awards will be accepted for a limited time during the going-out-of-business sale.
The move to liquidate comes shortly after Stein Mart filed for Chapter 11 bankruptcy.
"“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 Hunt Hawkins said in a statement. "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.
With between $500 million and a billion dollars in both assets and liabilities, the company owes $16.4 million to CIT Commercial Services and $10.7 million to Rosenthal & Rosenthal, both accounts receivable factoring companies that are its largest creditors. DSW, Peerless Clothing and Hanesbrands are among other creditors.
In June, the company told the SEC there was is "substantial doubt" about its ability to stay in business, with the company's accounting firm including a "going concern" note in its financial statements.
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