Financial problems at Steve & Barry's |
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| Thursday, 03 July 2008 | |
 Steve & Barry's in financial problems The New York-based chain is readying plans to close more than 100 of its stores. If the company doesn't find emergency financing it even contemplates full liquidation, according to the Wall Street Journal. They retail chain is seeking a tentative plan for about
$40 million in debtor in-possession financing if it must file for bankruptcy protection.
Childhood friends Steve and Barry started out selling dirt cheap T-shirts at flea markets in Long Island, New York, while finishing up high school and then college, opened their first Steve & Barry's University Sportswear retail store in 1998. Today the company, which sells every item in its stores for $19.99 or less, operates more than 250 shops in about 35 states nationwide. Stores range from 50,000 to over 100,000 sq. ft. |
The decay of Steve & Barry's LLC is striking, as the retailer was hailed a few months ago as one of the few bright spots in the ailing retail sector. New stores opened at a dizzying pace and celebrities like Sarah Jessica Parker, Venus Williams and MBA star Stephon Marbury designed clothing lines and sportswear for the company. What will happen to these lines remains an open question. 