Reports: Steve & Barry's headed for bankruptcy
Steve & Barry's, the high-flying national chain based in Port Washington and known for its cheap chic, seems headed for a crash into bankruptcy, according to reports in the Wall Street Journal and New York Times Wednesday morning.With more than 275 stores selling high-fashion items for less than $20, the chain started by a pair of Long Island friends has hit a huge liquidity wall, according to the papers and market analysts. It has been unable to raise rescue financing in recent weeks and could be force to sell all its assets, the Journal said. But eleventh hour talks also continues about a bailout, the paper said.
A bankruptcy filing could come as early as Wednesday, the Journal and Times said.
For years, analysts and the core market of teens and young adults have adore Steve & Barry's for its offerings, often designed by celebrites such as Sarah Jessica Parker, Amanda Bynes, Venus Williams and Stephon Marbury. But the profit margin was razor-thin and now volume seems unable to support rent, licensing and other expenses.
Last week there were reports that the chain could shutter about 100 of its stores, but there was never confirmation or explanation of which stores might close. Stores, including the ones on Long island, have continued to operate.
Original Source : http://www.newsday.com/business/ny-bzsteve0710,0,7462884.story
