Stein Mart sets bid procedures for sale of intellectual property

By Sarah Lizee

Olympia, Wash., Oct. 30 – Stein Mart, Inc. is seeking court approval of the bidding procedures of its intellectual property, according to a motion filed Friday in the U.S. Bankruptcy Court for the Middle District of Florida.

Stalking horse bidder Stein Mart Online, Inc. has agreed to a purchase price of roughly $4 million. If Stein Mart Online is not ultimately the winning bidder, the debtor will pay a $120,054 break-up fee.

Competing bids would be due by 5 p.m. ET on Nov. 16.

Qualified bids must provide for an initial overbid of cash consideration of $4.22 million, which is inclusive of the break-up fee.

Subsequent bids must be in cash increments of $100,000 or more.

An auction, if needed, would be held on Nov. 18.

A sale hearing would take place on Nov. 23.

Stein Mart is a Jacksonville, Fla., operator of retail stores. The company filed Chapter 11 bankruptcy on Aug. 12 under case number 20-02387.

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