Stein Mart Inc is the latest retailer to hint at COVID-induced challenges that could precede a tour through bankruptcy court.

The off-price chain issued a going-concern warning in its annual report filed with the Securities and Exchange Commission, though it has struggled since at least 2018, with factors in the past year predicting financial turmoil ahead.

Stein Mart sought to head off its liquidity problems by selling itself to Stratosphere Holdco, an entity to hold the operations, and other related assets for parent firm Kingswood Capital Management in a deal inked on Jan. 3. But when the coronavirus pandemic hit, Stein Mart and Kingswood mutually agreed to terminate their merger agreement on April 16. Under the terms of their agreement to end the planned transaction, neither party will be required to pay the other a termination fee.

In completing the final audit for the year ended Feb. 1, Stein Mart’s independent auditor KPMG said in a letter to shareholders and the company’s board that the temporary closure of all stores due to COVID-19 caused a material adverse effect on the company’s sales, results of operations, liquidity and cash flows. The impact raises substantial doubt over the company’s capacity to continue operations.