Retail eCommerce Ventures adds another brand to its growing conglomerate; Stein Mart. Along with the $6.02 million purchase of Stein Mart’s intellectual property, according to a company press release.
- REV submitted the winning bid at a Nov. 18 auction and it was approved on Nov. 23 by the U.S. Bankruptcy Court for the Middle District of Florida, Jacksonville Division.
- REV acquired the Stein Mart nameplate, its private brands, domain names, social media assets, and customer data from Hilco Streambank.
- The new owner expects to relaunch Stein Mart as an online-only store early next year, per the announcement.
Alex Mehr and Tai Lopez are the founding owners of REV, a company with the intent to “renew businesses that have struggled in the age of eCommerce”. “Since then, REV launched their operations by picking up household-name retailers that were in the midst of financial difficulties”, including RadioShack, Dressbarn, Pier 1, and Modell’s Sporting Goods.
Omnichannel strategy for 2021
Stein Mart started the year with a dramatically different trajectory in mind for its future. In January, the company found itself working on an acquisition deal part of it includes going private. Kingswood Capital Management will facilitate the acquisition and privatization of Stein Mart. By April, the deal didn’t go through due to “unpredictable economic conditions” resulting from COVID-19. Then, in mid-summer, the pandemic surged in California, Texas, and Florida — three states that had nearly 40% of its stores — leading to a decline in-store traffic and financial struggles with vendors. In August, the discount department store filed for Chapter 11 with plans to liquidate stores. During that time REV sought to capture such an opportunity by acquiring the company and focusing on eCommerce trajectories.
Now Retail Ecommerce Ventures sees a path forward for Stein Mart in expanding its e-commerce experience. “We look forward to building upon the solid foundation of existing Steinmart.com customers and introducing new loyalists to the brand by improving the online shopping experience, broadening the merchandise mix and deploying targeted social media marketing campaigns,” Lopez said in a statement.
REV continues to report its success in flipping past acquisitions into e-commerce ventures. In August, the company said that revenue for Dressbarn, which it purchased from Ascena out of bankruptcy last year, grew 165% quarter over quarter after it was relaunched online.
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