Steve & Barry's avoids liquidation |
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| Tuesday, 05 August 2008 | |
 Just in time to avoid liquidation, bankrupt retailer Steve & Barry's LLC agreed to be acquired by turnaround specialist Bay Harbour Management LC for $163 million. In what is called a “stalking horse” asset purchase agreement, Bay Harbour Management LC (or actually BH
 S&B Holding LLC, a new subsidiary of Bay Harbour Management) would acquire certain of the bankrupt company’s assets, with the intent to continue operating the retailer with current staff and key facilities.
The assets include, but are not limited to, a minimum of 125 Steve & Barry’s store leases (so long as a deal on renegotiated leases can be reached), all merchandise, with the exclusion of any product located at stores not purchased by BH S&B Holdings, and all Steve & Barry’s intellectual property rights, including its celebrity and brand licenses, including Sarah Jessica Parker’s Bitten line. The ‘stalking horse’ (or ‘lead’) bid by BH S&B Holding LLC will serve as a starting point when the company’s assets hit the auction block at 10 a.m. on Aug. 18 at the Manhattan offices of Weil, Gotshal & Manges LLP, which has represented Steve & Barry’s throughout its bankruptcy proceedings. The company hopes to complete the sale process in court on Aug. 19. The retailer of cheap-chic apparel, which has 276 stores in 39 states, filed for Chapter 11 on July 9. photo: website Steve & Barry's / Bitten |
