The next time you’re trying to clothe a family of 20 for the price of one MLB All-Star Game bleacher seat…you’ll just have to break into Joe Gaer’s apartment, as Newday’s Noel Rubinton and Keiko Morris explain:
Steve & Barry’s, the Port Washington-based clothing retailer, announced Wednesday afternoon that the company filed for Chapter 11 bankruptcy, citing the volatility of the credit markets and the general economic slide as major factors affecting the company’s performance.
Steve & Barry’s LLC said it initiated cases under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York. Steve & Barry’s stores and operations across the nation, including its 276 retail locations, remain open, the company said, and are conducting business as usual. But the company said it was starting to reduce its payroll and the sale of the company was being explored.
With 276 stores selling high-fashion items for less than $20, the chain was started by a pair of Long Island friends, Steve Shore and Barry Prevor, in 1985. But recently it hit a huge liquidity wall. It has been unable to raise rescue financing in recent weeks and could be force to sell all its assets. Eleventh-hour talks aimed at a bailout appared to be unsuccessful.
For years, analysts as well as a core market of teens and young adults have adored Steve & Barry’s for its offerings, often designed by such celebrities as Sarah Jessica Parker, Amanda Bynes, Venus Williams and Stephon Marbury. But the profit margin was razor-thin and now volume seems unable to support rent, licensing and other expenses.