On March 31, 2020, Stein Mart, Inc. (“Stein Mart,” or the “Company”) issued a press release announcing that it is implementing significant actions to mitigate the ongoing impact of COVID-19 on its cash flow to protect its business and associates for the long-term. These actions include temporarily reducing the salaries of executive management by 20 percent and suspending the compensation of its Board of Directors. Further actions are detailed in Item 8.01 of this Form 8-K and the press release attached as Exhibit 99.1, which is incorporated herein by reference.

ITEM 8.01 OTHER EVENTS

In addition to the actions disclosed in Item 5.02 of this Form 8-K, the press release issued on March 31, 2020 announced additional actions taken by the Company related to the COVID-19 pandemic:

▪Extending the temporary closure of all stores beyond the previously announced March 31 date. As the situation continues to evolve rapidly, Stein Mart is not currently able to predict when the stores will reopen.

▪Furloughing most store associates and a significant number of associates in its supply chain network and corporate offices.

▪Temporarily reducing the salaries of associates not furloughed.

▪Working with their vendors and landlords to negotiate temporary terms.

The press release attached as Exhibit 99.1 is incorporated herein by reference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

99.1 Press Release dated March , 2020.

STEIN MART INC Exhibit
EX-99.1 2 ex991smrtannouncescovi.htm EX-99.1 DocumentExhibit 99.1March 31,…
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About STEIN MART, INC. (NASDAQ:SMRT)

Stein Mart, Inc. is a national retailer offering the fashion merchandise, service and presentation of a department or specialty store. The Company offers apparel for women and men, as well as accessories, shoes and home fashions. The Company’s target customers are women over 45 years old. The Company operates approximately 280 stores in over 30 states and an Internet store. Its stores are located in the Northeast, Midwest, Southeast, Texas and the Southwest. It is concentrated in the Southeast and Texas where over 180 of its stores are located. The Company’s stores offer a range of services, such as merchandise locator service, a Preferred Customer program, co-branded and private label credit card programs, and electronic gift cards. The Company’s merchants purchase products from approximately 1,200 vendors. It leases all of its store locations, generally for approximately 10 years with options to extend the lease term for over two or five year periods.