Steve & Barry\'s (Massena NY)

[dmx10101]

by Chelsea Emery

NEW YORK, Nov 20 (Reuters) - Steve & Barry's stores will be liquidated by early 2009 after the new owners concluded they would be unable to obtain financing to keep the casual clothing retailer in business amid disappointing sales.

Steve & Barry's had filed for bankruptcy protection in July, and in the following month it sold its business to investment firms Bay Harbour Management and York Capital Management for $168 million.

But several affiliates of the new owners filed for Chapter 11 bankruptcy protection in Manhattan on Wednesday, saying in a court filing that Steve and Barry's revenue had suffered because of the declining health of the U.S. economy and the slump in the retail market.

"This is the hardest environment in 30 years for retailers," said Peter Schaeffer, a partner with restructuring advisor Carl Marks. "Chances of companies that have filed for bankruptcy coming out whole is difficult."

Because of the disappointing sales, the new owners at Steve and Barry's violated covenants under their senior secured credit facility and have no prospects to obtain financing to keep operating the stores, the filing shows.

"The appropriate course of action to maximize value for the benefit of all their stakeholders is an orderly liquidation," the filing said. The liquidation is scheduled to be completed by the end of this year or early 2009.

The company asked the court for permission to begin store closing sales immediately because Thanksgiving and the crucial Christmas shopping season are rapidly approaching.

RAS Management Advisors LLC is serving as restructuring adviser, and a joint venture of liquidation firms including Great American Group LLC, SB Capital Group, Tiger Capital Group and Hudson Capital Partners will assist in the liquidation, the filing shows.

Steve & Barry's is known for its apparel lines with celebrity brands that include actress Sarah Jessica Parker, surfer Laird Hamilton and tennis star Venus Williams.

The liquidation of Steve & Barry's is another blow for malls that are already losing a slew of tenants to bankruptcy liquidations, including home goods retailer Linens 'n Things and department store Mervyn's.

"In 2009, landlords are going to have to get creative to figure out what to do with the enormous amount of empty stores in their inventory," Schaeffer said. (Additional reporting by Jonathan Stempel; Editing by Lisa Von Ahn)

[tokensafari]

http://www.guardian.co.uk/business/feedarticle/8050296

 NEW YORK, Nov 20 (Reuters) - Three months after purchasing apparel chain Steve & Barry's out of bankruptcy, the new owners will liquidate the remaining 173 stores after plans to operate the chain fell victim to slumping retail sales and difficulty in getting financing.
Investment firms Bay Harbour Management and York Capital Management, which had bought the company for $168 million in August, plan to liquidate their holdings by early 2009, according to the company's Chapter 11 bankruptcy filing on Wednesday in Manhattan.
"This is the hardest environment in 30 years for retailers," said Peter Schaeffer, a partner with corporate restructuring and investment adviser Carl Marks. "Chances of companies that have filed for bankruptcy coming out whole is difficult."
BH S&B Holdings, the affiliate of the two investment firms, said in the bankruptcy filing the declining health of the U.S. economy and the slump in the retail market had hurt company revenue.
Sales at all stores have been disappointing, said the filing, citing "the general health of the American economy and the state of the retail market in particular."
Steve & Barry's had violated covenants under their senior secured credit facility and the owners have no prospects to obtain financing to keep operating the stores, according to court documents.
The company had already begun liquidation sales at about 67 stores.
Steve & Barry's, which began in 1985 as a retailer of university-branded clothing, became known for its branded apparel lines from celebrities including actress Sarah Jessica Parker, surfer Laird Hamilton and tennis star Venus Williams.
To differentiate itself, it sold almost everything in its stores for less than $11. At the same time, the chain aggressively negotiated with mall landlords for lower-than-average lease rates and expanded rapidly.
But the economic slump undermined already razor-thin margins, restructuring experts said.
"OBSESSIVELY FOCUSED"
"This business growth was obsessively focused on real estate growth and using recognizable faces to drive brand growth," said Matthew Katz, a managing director at restructuring firm AlixPartners. "In go-go growth years, the business was rewarded. However the underlining business processes and controls were not put in place and as the markets turned, this unraveled quickly."
The company has asked the court for permission to begin store-closing sales immediately because Thanksgiving and the crucial Christmas shopping season are rapidly approaching.
RAS Management Advisors LLC is serving as restructuring adviser, and a joint venture of liquidation firms led by Great American Group LLC and including SB Capital Group, Tiger Capital Group and Hudson Capital Partners will assist in the liquidation, the filing shows.
Separately, former employees of the chain on Nov. 18 sued the owners of Steve & Barry's, saying they were laid off the day before without 60 days advance written notice of their termination, as required by the Worker Adjustment and Retraining Notification Act.
An attorney for the company declined to comment.
The liquidation of Steve & Barry's is another blow for malls that are already losing a slew of tenants to bankruptcy liquidations, including home goods retailer Linens 'n Things and department store Mervyn's.
"In 2009, landlords are going to have to get creative to figure out what to do with the enormous amount of empty stores in their inventory," Schaeffer said.
Some 148,000 retail stores are expected to be shuttered this year, according to the International Council of Shopping Centers. That's the largest number since 2001 and represents at least 625,000 retail jobs. (Additional reporting by Jonathan Stempel; Editing by Lisa Von Ahn and Brian Moss)

[mikey7290]

I went to the St. Lawrence Centre mall in Massena, NY yesterday and while I was there I thought I would check out the Steve & Barry's store to see if there was anything left.  When I got there, I noticed that the gate was pulled down and there were signs saying "store closed -- all fixtures on sale."  Hopefully it won't stay vacant for long.  They are still circulating the petition at the customer service desk to try and get Target to move into the old Steve & Barry's after they move out.  Here is a pic I took of the store yesterday with a cell phone.

[HeatherM]

Was just in the Millcreek Mall in Erie, PA today and snapped this shot of the Steve & Barry's there. Didn't go in because I was in a hurry.

http://smg.photobucket.com/albums/v475/ParkersAngel/Retail%20Stuff/?action=view¤t=120808_10041.jpg" target="_blank">http://img.photobucket.com/albums/v475/ParkersAngel/Retail%20Stuff/120808_10041.jpg" border="0" alt="Steve  & Barry's GOB Erie PA">

[Ameskid]

I Went to the S&B in Eastgate Mall in Cincinnati.  Still a good selection of stuff left there, but walked away empty-handed.  I took a few "spy shots", but until I get the Verizon PixPlace figured out, they won't be on my computer.

[NeverBeenToAnAmes]

They never should have moved into ladies' fashions. Sarah Jessica Parker killed them. :)

[JimSawhill]

The Steve & Barry's here in the University Mall (an old JC Penny store) has closed!!

[EddieJ1984]

Hey all this is my first post!! Heres pictures of the steve & barry's near me at franklin mills mall!

and as you can see in this close up it only has 5 days left

And here's a shot of inside the store

[dmx10101]

Here's the Steve & Barry's in Lawrenceville, GA at the Discover Mills Mall. This store just opened about a year ago. Everything was $3.33 or less and it looked like a flea market in the store. It's the last few days. (taken 1/5/09)

[Marc82]

Yeah. I went to the Meriden Square Mall 2 days after Christmas and S&B's was already gone. Was told they were gone before XMAS.

[standa]

I never went to Steve & Barry's.  Was it similar to Bob's?

[Lastdaysofrain]

Originally posted by standa
I never went to Steve & Barry's.  Was it similar to Bob's?

No, much much smaller, it was like a more low rent, more "middle america" version of Old navy.

[JimSawhill]

Originally posted by standa
I never went to Steve & Barry's.  Was it similar to Bob's?

Bob's (unless TJX is expanding them) is a small chain in the northeast. S&B was a northeastern chain that expanded NATIONWIDE!

I hope Bob's won't be expanding!!

[Mobil]

Originally posted by dmx10101
The one in Athens, GA is closing. It was one of the older locations having opened in August 2006. It is located in an old Wal-Mart in a large deserted shopping center.

Edit 9/13- I went there a ouple of days ago and snapped these pics-

That's old?

[dmx10101]

Originally posted by Mobil

Originally posted by dmx10101
The one in Athens, GA is closing. It was one of the older locations having opened in August 2006. It is located in an old Wal-Mart in a large deserted shopping center.

Edit 9/13- I went there a ouple of days ago and snapped these pics-

That's old?

for a Steve and Barrys it is.

[C. Fontaine]

Here's some pictures I took today of the now vacant Steve & Barrys in Agawam, MA.  This one just had a grand opening 6 or so months ago!

http://www.amesfanclub.com/archive/main.php/v/other/steve+and+barrys/agawam/013109/

[darkmoon9]

BREAKING NEWS: Famous Labels to open at Schuylkill Mall  posted at 6:08 p.m.

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Staff reports
Published: Friday, March 20, 2009 6:22 PM EDT
The Schuylkill Mall has found a retailer to fill part of the former Steve & Barry's store.

Elaine Maneval, the Frackville mall's manager, said in a press release Friday a Famous Labels store will open in the spring.

Famous Labels, based in Las Vegas, operates 25 stores nationwide, according to the release. The store sells brand labels at a discount and will carry apparel and household and gift items, the release states.

For more on the story, see Saturday's edition of The Republican-Herald.