Steve & Barry's Files for Chapter 11
By EVAN CLARK
July 9, 2008
Following a mad dash for cash, Steve & Barry's came up short and Wednesday filed for Chapter 11 protection in Manhattan Bankruptcy Court along with 63 of its affiliates.
The company's 276 stores are open and conducting business as usual as it begins to take steps to reorganize, a process which could include a sale of the company or its assets to repay outstanding debt.
Steve & Barry's is also reducing expenses though layoffs and office consolidations. The firm cut 172 corporate and field staff positions Wednesday, it said.
It is a significant fall for a company that has experienced rapid sales growth, signed licenses with stars such as Sarah Jessica Parker and Stephon Marbury and snatched up vacant mall space. |