New York City The Wall Street Journal on Tuesday reported that Steve & Barry’s will be liquidated and some 5,000 employees let go. The newspaper cited two unnamed sources said to be familiar with the situation.
According to the report, the chain is set to announce this week that it will go out of business. Steve & Barry’s was purchased out of bankruptcy three months ago by a private-equity firm and hedge fund, Bay Harbour Management LC, for $168 million.
The newspaper said that Bay Harbour has hired a liquidation firm to handle the going-out-of-business sale for the chain.
When he acquired the company on Aug. 21, Bay Harbour managing principal Douglas Teitelbaum said, "this company offers better value than I've seen anywhere."
In mid-October Steve & Barry's said it had hired Harold Kahn, who has been at the helm of retail chains such as Macy's East, to run the revamped chain. According to the report, citing an unnamed source, Kahn is no longer with the company.