Steve & Barry's sale delayed |
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| Monday, 25 August 2008 | |
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The sale of casual wear retailer Steve & Barry's to BHY S&B Holdings LLC has been delayed by the judge overseeing the hearing.
Steve & Barry's LLC's bid to sell its assets for $168 million has been criticised by a bankruptcy judge who said a provision protecting its executives from lawsuits was improper.
The comments mean that Steve & Barry's can't sell its assets to BHY S&B Holdings, under the current proposed agreement. Steve & Barry's co-founders Steve Shore and Barry Prevor are investors in BHY S&B Holdings. The supplier of low-priced chic apparel and footwear filed a voluntary Chapter 11 petition in a Manhattan bankruptcy court in July after a cash crisis highlighted by its default on a $197 million asset-backed loan from GE Commercial Finance Corporate Lending. The future of its 270 Steve & Barry's outlets across the country is uncertain but had the bid from BHY S&B been approved, it is believed that up to 100 store would be closed down. The deal, which would have returned about $0.02 on the dollar to unsecured creditors is now dependent on the final outcome of the hearing. Under the proposal, Shore and Prevor would each own 10% of the company. Hilco Merchant Resources LLC would own 10% and the remaining stake would be split between York Capital and Bay Harbour. |
