Stein Mart files for Chapter 11 bankruptcy and says all 281 of its stores could close

• Stein Mart filed for Chapter 11 bankruptcy Wednesday, and is also exploring a sale of its e-commerce business.
• The company was struggling to revive sales even before the coronavirus pandemic hit.
• "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 and CFO Hunt Hawkins said in a statement.

Off-price retailer Stein Mart filed for Chapter 11 bankruptcy Wednesday and said it would close "a significant portion, if not all" of its stores.

The company is also exploring a sale of its e-commerce business.

"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 and CFO 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," he added. "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."

Stein Mart operates 281 stores in 30 states. It sells clothing, accessories, home decor, and shoes at discounted prices.

The retailer was struggling to revive sales even before the pandemic hit, and temporary closures dragged sales down further.

In the company's first quarter, which would have been most affected by pandemic-related closures, total sales declined 57.3% year-over-year, to $134.3 million. Stein Mart also reported a sales decline in the quarter before the pandemic hit.

It has laid off a significant number of corporate employees at its Jacksonville headquarters, the Jacksonville Daily Record reported Tuesday.