Stein Mart has become the latest beleaguered brand to be snatched up by Retail Ecommerce Ventures (REV).
Continue Reading Below
REV announced Thursday that it won a bankruptcy court auction for the intellectual property of Stein Mart Inc. after bidding just over $6 million.
Under the agreement, REV will acquire the Stein Mart nameplate as well as its private-label brands, domain names, social media assets and customer data.
In August, the department store chain filed for bankruptcy after 112 years in business due to the "combined effects of a challenging retail environment coupled with the impact of the coronavirus (COVID-19) pandemic," according to CEO Hunt Hawkins.
REV plans to revive the off-price family fashion and home goods retailer by relaunching it as an online-only store in early 2021.
"Our growing set of investors sees Stein Mart as another important addition to our increasing stable of venerable brick-and-mortar retail brands that we are bringing back to life as online destinations," said Alex Mehr, CEO of Miami-based REV.
Mehr and REV Executive Chairman Tai Lopez have scooped up numerous brands that have been forced into bankruptcy protection as a result of the pandemic. Those brands so far include Pier 1, Dressbarn, Modell’s and most recently RadioShack, all of which are being turned into online-first businesses.
In doing so, REV is capitalizing on the surge of pandemic-wary shoppers who are staying home to shop online rather than in person.
Lopez said the company will build upon Steinmart.com's existing customer base while also introducing "new loyalists to the brand."
REV plans to improve the online experience, widening its merchandise selection and deploying targeted social media marketing campaigns.
The Associated Press contributed to this report.