Port Washington, N.Y. Steve & Barry’s announced late Monday that it has agreed to a $163 million takeover offer by BH S&B Holding LLC, a newly formed subsidiary of Bay Harbour Management, a New York City-based investment firm specializing in turnarounds of distressed companies.
The bid is a “stalking horse” offer, or the first official bid, setting a minimum price for a company’s sale in bankruptcy. It is subject to approval by federal bankruptcy court in Manhattan, where Steve & Barry’s filed last month.
Bay Harbour said that its offer, subject to renegotiation of lease terms, would entail operating Steve & Barry’s stores as a going concern. It also said it would retain current staff and key facilities, including Steve & Barry’s New York headquarters, Columbus, Ohio distribution center, and certain overseas offices. The assets to be acquired include but are not limited to certain Steve & Barry's store leases; all Steve & Barry's merchandise, with the exclusion of any product located at stores not purchased by Bay Harbour; and all Steve & Barry's intellectual property rights, including its celebrity and brand licenses.
Bay Harbour holdings have included the retailer Barney’s New York, Telcove, and the rebranding and turnaround of the former Aladdin Casino in Las Vegas, which is now the Planet Hollywood Resort and Casino.