Steve & Barry's was an American retail clothing chain, featuring casual apparel. By mid-2008, the chain operated 276 stores in 39 states. The company was headquartered in Port Washington, New York. The company liquidated all of its stores throughout 2008 and 2009.

 

The chain's origin was based on various university campuses across the United States. Until 2007, it was called Steve & Barry's University Sportswear, and the chain specialized in college-related apparel and private-label casual clothing. The chain dropped the "University Sportswear" tagline after securing licensing agreements with several celebrities to develop and distribute private-label lines of clothing designed or inspired by each of them, in an attempt to expand the chain's customer base.

 

Financial problems and bankruptcy plan

As of June 21, 2008, the company was deficient in paying a $135.9 million balance outstanding to a General Electric Commercial lending unit.The firm filed for bankruptcy protection under Chapter 11 on July 9, 2008. All stores were to remain open with the store's return policy, store credit, and gift cards unchanged. Founders and co-Chief Executives Steve Shore and Barry Prevor cited liquidity concerns and the generally harsh conditions for retailers in recent months.

 

The Associated Press reported that Steve & Barry's was considering a plan to sell all or some of its assets to repay its outstanding debt. Steve & Barry's was also in talks with Sears Holdings Corporation for a possible acquisition. It was reported that Sears might have been interested in buying some or all of Steve & Barry's brands.

 

On August 21, 2008, Steve & Barry's announced that BH S&B Holdings LLC, a newly formed affiliate of investment firm Bay Harbour Management L.C., agreed to acquire certain assets of Steve & Barry's. In addition to acquiring merchandise inventories and transfer rights to Steve & Barry's store leases, BH S&B Holdings would acquire all Steve & Barry's intellectual property rights, including its celebrity and brand licenses, and the company's key facilities, including its Port Washington, New York headquarters, Columbus, Ohio distribution center, and certain overseas offices. Bay Harbour planned to keep open about 150 of the chain's 276 stores, and brought Hal Kahn, chairman and CEO of Macy's East, on board as the new CEO.

 

Bankruptcy documents reveal annual sales of $656.6 million.

 

Reorganization efforts failed, with court filings stating that revenue suffered because of the declining health of the U.S. economy and the slump in the retail market. On November 20, 2008, after closing many stores, Steve and Barry's parent company announced the remaining 176 stores would be liquidated by early 2009 and the chain was going out of business.

 

The New York Post reported on Mar. 31, 2010 that Ex-New York Knicks player Stephon Marbury was sued by a sports marketing agency claiming he owes more than $200,000 in commissions for helping create a line of sportswear which was distributed through Steve & Barry's retail stores.