Port Washington, N.Y. Despite trying for several months to salvage the company, the word is that Steve & Barry’s has pulled the plug. The company has filed for bankruptcy a second time, less than five months after its initial filing, but this time the report is that the exit strategy is to liquidate.
Steve & Barry's had filed for bankruptcy protection in July, and the following month sold its business to the investment firms Bay Harbour Management and York Capital Management for $168 million.
However, the 276-store retail chain is unable to get additional financing in the current economic environment. It filed for Chapter 11 in Manhattan late Wednesday under the name BH S&B Holdings.
According to a court filing, "sales at all stores have been disappointing" because of "the general health of the American economy and the state of the retail market in particular." As a result, the new owners 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," according to the filing. The liquidation is scheduled to be completed by the end of this year or early 2009, it shows.
RAS Management Advisors LLC is serving as restructuring adviser, and a joint venture led by Great American Group LLC will assist in the liquidation, the filing shows.