Steve & Barry's begins closing 103 stores

Steve & Barry's LLC, based in Port Washington, N.Y., filed for Chapter 11 bankruptcy protection in July after ambitious growth plans were hurt by slower consumer spending and the credit squeeze.

A bankruptcy court approved the $163 million acquisition in August. Under terms of the deal the company is closing nearly half its locations to operate with a smaller base of 173 stores, in an effort to achieve profitability.

Final liquidation sales have begun at the closing locations although a flagship store under construction in Manhattan will still open at the site of the former Greenwich Village Tower Records.

The last day of sales for 24 stores will be Sept. 24. Other stores will close soon after.

Sarah Jessica Parker reaffirmed her partnership with Steve & Barry's to sell clothing and accessories in the Bitten line. Also collections of "celebrity designers" Venus Williams, Amanda Bynes, Laird Hamilton, Ben Wallace and Bubba Watson will be continued..

Andy Todd, president of Steve & Barry's, said: "We're finalizing a strategic business plan that will put Steve & Barry's on track to meet our profitability goals over the long term. The decision to operate with a smaller, more productive store base is integral to that plan. While the business rationale for this action is sound, we deeply regret the impact these store closings will have on our associates, our customers and the communities where these stores are located. We want to thank all of our associates for their dedication and outstanding contribution and will make every effort to transition displaced associates to go-forward stores wherever possible."

Image: www.bittensjp.com