(Photo : Pexels/LisaFotios)
Stein Mart recently filed for bankruptcy and shuttered hundreds of stores nationwide.
In Kansas City, Missouri, one of these vacant locations is set to be taken over by Sierra, a rival retailer aiming to expand its regional footprint.
Stein Mart Faces Closure Amid Financial Struggles
According to a press release, Stein Mart, a long-standing retailer founded in 1908, filed for Chapter 11 reorganization on August 12, 2020.
Stein Mart was known for offering trendy brand-name fashion for men and women, unique home décor, gifts, and accessories at prices significantly lower than department store rates.
CEO Hunt Hawkins announced that the combination of a tough retail market and the impacts of the coronavirus pandemic have severely affected the company's finances, CBS reported.
He explained that the company does not have enough funds to continue its normal operations.
Stein Mart initially shut down its operations on March 18 due to the coronavirus outbreak, with a phased reopening starting in April.
Despite reopening all its stores with reduced hours, the company faced ongoing financial difficulties. In June, Stein Mart secured $10 million from the federal Paycheck Protection Program, which aims to assist small businesses impacted by the pandemic.
However, Stein Mart's financial troubles began well before the health crisis. In the first quarter, sales plummeted to $134 million, a significant drop from $314 million in the same period the previous year.
According to court documents, the company was also grappling with nearly $200 million in total debt as of early May.
The pandemic led to many of Stein Mart's nearly 8,000 employees being furloughed after the company temporarily closed its stores, as mentioned in court documents by CEO Hunt Hawkins.
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Sierra Expands into Former Stein Mart Location in Kansas City
(Photo : Pexels/TimMossholder)
A vacant Stein Mart store in Kansas City, Missouri, is set to have a new occupant. The Kansas City Star reports that outdoor retailer Sierra will take over the space previously held by Stein Mart at Orchard Corners Shopping Center in Lenexa, Johnson County.
Stein Mart had operated in this location since 2009 before closing due to bankruptcy after over a decade.
Sierra, which opened its first Kansas City store in Overland Park's Bluhawk site in May, is now expanding its presence there. This move will effectively double Sierra's operational footprint in the region.
According to The U.S. Sun, Sierra, an activewear retailer, is gearing up to move into a significant space at Orchard Corners Shopping Center, positioning itself alongside fellow TJX Companies stores TJ Maxx and HomeGoods.
All three brands are under the umbrella of TJX Companies, which also owns Marshalls and HomeSense.
Sierra, which became part of TJX in 2012 and is one of its smaller brands alongside Homesense, plans to occupy a 19,104-square-foot space, with these plans currently under review by the city's planning commission.
David Block, President of Block & Co. Inc. Realtors, represented the landlord during the lease negotiations.
Meanwhile, Petco also plans to move into the remaining section of the previously 36,838-square-foot Stein Mart space. Spirit Halloween temporarily occupied the full area after Stein Mart was vacated.
The Kansas City Star reports that both moves reflect significant retail shifts in the area.
TJX operates over 20 locations in Kansas City and thousands more worldwide.
Sierra, previously known as Sierra Trading Post before shortening its name in 2019, maintains around 100 locations across the United States, including in Wyoming, Colorado, Iowa, Nebraska, Illinois, and Minnesota.
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