Steve & Barry's has filed for bankruptcy protection a second time, less than five months after its initial filing, with a plan to fully liquidate. According to the company's Chapter 11 petition filed late Wednesday, the 276-store retail chain said it is unable to get additional financing in the current economic environment.
Less than three months ago, the retailer was acquired out of bankruptcy for $168 million by Bay Harbour Management and York Capital Management. BH S&B Holdings, the affiliate of the two investment firms, said in the most recent bankruptcy filing the declining health of the U.S. economy and the slump in the retail market had hurt company revenue. Sales at all stores have been disappointing, said the filing, citing “the general health of the American economy and the state of the retail market in particular.”
According to the court documents, Steve & Barry's had violated covenants under their senior secured credit facility and the owners have no prospects to obtain financing to keep operating the stores.
The company had already begun liquidation sales at about 67 stores.
The company has asked the court for permission to begin store-closing sales at the remaining 173 stores immediately, as Thanksgiving and the Christmas shopping season are rapidly approaching.
