Stein Mart to shut 281 stores due to bankruptcy after 112 years of business, Internet says 'Trump is bad for US'

Stein Mart had warned in June that it had 'substantial doubt' that it could survive the pandemic and now it has filed for Chapter 11 bankruptcy


                            Stein Mart to shut 281 stores due to bankruptcy after 112 years of business, Internet says 'Trump is bad for US'
(Getty Images)

National discount department store chain Stein Mart, which had warned in June that it had "substantial doubt" that it could survive the pandemic, has filed for Chapter 11 bankruptcy. The company has also laid off nearly 200 employees from its Jacksonville headquarter and announced that it will close most, if not all, the stores.

The company was in business for 112 years and had 281 stores in 30 states. However, it was struggling to revive sales even before the pandemic hit and temporary closures dragged sales further down. Linda Tasseff, a spokeswoman for Stein Mart, told Dallas News that the Jacksonville, Florida, department store expects to close all of its stores by sometime in the fourth quarter. The closings will happen on a staggered basis as the merchandise is sold.

Hunt Hawkins, Chief Executive Officer and Chief Financial Officer of Stein Mart, Inc, said in a statement: "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 the 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."

A Stein Mart store is seen on August 12, 2020, in Miami, Florida (Getty Images)

No sooner did the news made way to the micro-blogging site, people started reacting. One user commented, "Stein Mart is going out of business and I have a gift card that has about $100 on it from there. Anyway, yet another business goes under in Trump's America and even more people unemployed. Republicans, Trump is bad for the US and bad for business."



 

Another user also pointed out at US economy and said, "We were beginning to see record numbers of store closing even before COVID happened here! The economy was already on its way down, and the virus just accelerated it."



 

While some wanted to pay a tribute, as one commented saying, "Stein Mart is going out of business. Fran and I will be hosting a prayer vigil in their parking lot." Another user went all emotional and said, "I’m very nonchalant but my mother just told me Stein Mart was going out of business and I bout cried." While one user commented, "Y’all please keep my mother lifted up in prayer. Nothing is wrong with her but they are closing the local Steinmart in her city."



 



 



 

While a middle-aged mom complained saying, "First Pier 1 and now Stein Mart? Where is a middle-aged mom supposed to hang when this s**t is over?" and another sad customer said in a tweet, "Damn, RIP to my homie SteinMart." 



 



 

Another user shared a memory, saying, "I have lived for years in areas they had stores. I swear for the longest time I would drive by Stein Mart and wonder how many different types of Steins could they be selling. One day I told someone in my car and they told me they don't sell cups, they are like a Dept Store."



 

According to their website, Stein Mart, Inc. is a national specialty Omni off-price retailer offering designer and name-brand fashion apparel, home décor, accessories and shoes at everyday discount prices. Stein Mart provides real value that customers love every day. The company operates 281 stores across 30 states.

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