The discount retailer Stein Mart has announced that it will be closing all 281 stores nationwide, just two days after declaring Chapter 11 bankruptcy. Those closures include three Stein Mart locations locally in Palm Springs, Rancho Mirage, and La Quinta.
Company liquidators will immediately launch a “going out of business sale” at all locations with prices dropping by up to 30-percent.
In a news release, Stein Mart CEO Hunt Hawkins said the chain suffered tremendous losses due to Covid-19 and that sales and liquidity nearly vanished. According to Hawkins, “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. 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. I would like to thank all of our employees for their dedication and support.”
Gift cards and loyalty reward points will still be honored but “only for a limited time.”
The three stores in the Coachella Valley join 22 other Stein Mart locations in California closing down. from San Diego County in the south to Sacramento County in northern California.
Stein Mart was founded in 1908 in Greenville, Mississippi by Sam Stein. The chain grew through the south, and in the 1990s began expanding, eventually opening locations in 30 states.