Report: Steve & Barry’s Said to Face Liquidation
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.
Credit terms tightened
Target’s credit card business took a heavy toll on the company’s overall performance in the third quarter, as operating profits in the segment declined 83% to $35 million.
As is the case with other credit card issuers, Target saw delinquency and write-offs increase during the third quarter, as national economic conditions deteriorated.
“This leads to higher than expected bad debt expense both due to write-offs within the period as well as an addition to our reserve of $100 million during the quarter to accommodate anticipated write offs in future periods,” Target cfo Doug Scovanner said.
Based on current trends, Target’s expects a write-off rate for the year around 9% and that figure is expected to increase in 2009, which is why the $100 million addition to the reserve was necessary.
“We continue to tighten all aspects of portfolio underwriting, granting fewer new accounts with lower average credit lines, aggressively reducing open credit lines on many existing accounts and pursuing more proactive collection activities,” Scovanner said.
OfficeMax to bring back ElfYourself campaign
NAPERVILLE, Ill. OfficeMax has teamed up with JibJab Media to bring its popular ElfYourself.com campaign back to the Web for a third year.
OfficeMax and JibJab, best known for online political parodies such as ‘This Land’, began conversations following the 2007 holiday season when the companies scored the number one and number two positions respectively for fastest growing sites on the Web, according to comScore. Over six weeks during the 2007 holiday season, ElfYourself received more than 193 million site visits, and more Americans were visiting ElfYourself.com ( http://www.elfyourself.com/ )than Facebook.com ( http://www.facebook.com/ ), according to Web measurement firm Quantcast.
ElfYourself enables users to create free personalized holiday eCards by uploading their photos and transforming themselves, family and friends into dancing elves. OfficeMax and JibJab have jointly enhanced the ElfYourself experience by increasing the number of elves a visitor can create, from four to five, as well as offering three new dances including a disco dance, country dance and the Charleston.
This year ElfYourself will be running on JibJab’s Starring You Technology platform that not only enables users to create personalized online videos, but also get their personalized elves printed on greeting cards and holiday gifts such as ornaments, mouse pads, coffee mugs, and playing cards. For a small fee, users can also get a downloadable version of their video that they can watch offline, burn to a DVD or watch on their mobile devices.