New York City Steve & Barry's announced Thursday that BH S&B Holdings LLC, a newly-formed subsidiary of Manhattan-based Bay Harbour Management, was the successful bidder at the auction to acquire certain assets of Steve & Barry's. Under the terms of the deal, which is valued at $168 million, the majority of the apparel retailer’s 276 stores nationwide will remain open.
The bid is subject to bankruptcy court approval. It is expected to be completed on Aug. 25. The Bay Harbour Management subsidiary had previously offered to buy the chain for $163 million.
"Steve & Barry's offers a unique, high-value shopping destination to the American consumer," said Douglas Teitelbaum, managing principal of Bay Harbour Management, in a statement. "There's a fundamentally strong business model at Steve & Barry's that just needs some fine-tuning to get it back on a growth track in order to reach its full potential."
As part of the agreement, Bay Harbour will acquire the company's merchandise inventories, transfer rights to store leases, and all intellectual-property rights, including its celebrity and brand licenses, headquarters and other key facilities.
Steve & Barry's had filed for bankruptcy protection in July, citing tight credit markets and a pullback in customer spending.
Bay Harbour Management has significant experience in purchasing and subsequently turning around distressed companies. The firm's holdings have included Barneys New York, and the former Aladdin Casino, now operating on the Las Vegas strip as the Planet Hollywood Resort and Casino following its rebranding. Among the investors in BH S&B Holdings are Steve & Barry's co-founders Steve Shore and Barry Prevor.