Retail Ecommerce Ventures (REV), a company that has managed to flip distressed brands into successful ecommerce businesses, has now added Stein Mart to its portfolio. Big names such as Dressbarn, Modell’s Sporting Goods and Pier 1 Imports have been turned into online forces by REV.
The company was the winner of a bankruptcy court auction for Stein Mart along with its private-label brands, domain names, social media assets and other customer data. After filing for Chapter 11 bankruptcy protection in August, Stein Mart was acquired for USD6.02 Million.
“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 REV, which, over the last two years, has also bought out brands like Linens ‘N Things, and Franklin Mint. “With 281 stores in 30 states at the time of its bankruptcy filing in August, Stein Mart was a beloved destination for off-price shoppers in the Southeast, Texas, Arizona and California for more than 100 years.”
REV plans to relaunch the apparel and home goods stores exclusively online, which rivaled companies such as Ross Stores, Home Goods, Marshalls and Burlington Stores, by early 2021.
Amid the ongoing pandemic, many retailers experienced a rapid downturn as sales dried up. However, REV anticipates that off-price retailers are bound to rise once a COVID-19 vaccine is public. TJX Companies shares have risen 27% from a month ago, Ross shares rose 30% and Burlington shares went up about 14% within the last month.
“Any time you see the big, 800-pound gorilla competitor, like TJ Maxx, you know they’re doing something right,” REV’s Lopez said. “We want to be kind of an online version.”