Steve & Barry's Files for Bankruptcy
The discount retail chain Steve & Barry's filed for Chapter 11 bankruptcy Wednesday, citing rising costs and a tighter credit market as cause for its collapse. According to some analysts, other sources of doom included the chain's rapid expansion, poor marketing strategy, and reliance on expensive licensing contracts with celebrities such as actress Sarah Jessica Parker and professional basketball player Stephon Marbury.
The store—also known as that place on some campuses where you can buy really cheap gear 10 minutes before the game to match the rest of the fans—is in the process of eliminating 172 staff positions and, according to the Wall Street Journal last week, could close 100 of its 276 stores. Since the bankruptcy announcement, the individual stores are still awaiting word on their future, Michigan State's State News reports, while the company assures that it is "business as usual" for the time being.
The retailer's troubles were presaged by the University of Michigan's recent decision to not renew its licensing contract with the company and also by a Wall Street Journal article weeks ago that reported that Steve & Barry's had fallen behind on many of its payments, including $20,326 in advertising money owed to the Michigan Daily.
Tags: retail | Michigan State University | University of Michigan
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Reader Comments
Steve & Barry's Stores
I think its just awful that such a GREAT store as Steve & Barry's had to file bankruptcy! This country we live in is suppose to be a free country, the richest country! when we have these types of stores to shop at, with the economy so poor, you people would think stores like Steve & Barry's would not HAVE TO GO THREW BANKRUPTCY ! BUT!!! its the PEOPLES choice ! NOT the OWNERS DECISION! The people of this United States are the decision makers who keeps business owners going. If the people decide not to shop at your store how can you make it??? YOU CANT !!!!!!!!!! Steve & Barry's is the store almost ALL people can afford to shop at, its cheaper the your local stores... Yes, those stores are great too, but, Steve & Barry's is Aw-SOME ! and that is one of my FAVORITE PLACE TO SHOP. If they go out of business, that would really hurt a lot of people from my area, they are almost all low income with families and Steve & Barry's fits their budgets! COME ON PEOPLE,WAKE UP AND GIVE THIS STORE A CHANCE, GO SHOP AT Steve & Barry's TODAY ! NOW !
its sad
you know in cape giradua missiouri there were a lot of pepople to shop there and used that store cause there poor and could't go any were esle to get clothes foer there kids lke steven ND BARYS but there closing are store so no store for us anymore how nice is that
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