Steve & Barry's, Popular Retailer, to file for Bankruptcy Again

Newsday.com is reporting that popular retailer, Steve & Barry's, is planning to file for chapter 11 bankruptcy yet again.  3 months ago, the store planned to revive its' business, which was once successful.  The store made several attempts to improve its' financial state.  However, the attempts did not prove worthwhile, so the Port Washington based company has filed for bankruptcy protection and plans to sell its inventory.  Additionally, the company will be shutting down all of its stores.

When discussing the reasons for filing for bankruptcy, the store cited economic problems and conditions.  The store also disclosed that sales were disappointing and that it was unable to meet the terms of its financial agreements with lenders. 

Due to the quickly approaching holiday season, the company has decided to begin store-closing sales as soon as possible.  Court documents revealed that Steve & Barry's has approximately 170 stores across the country and employs nearly 5,000 people. 

According to economic experts, Steve & Barry's recent bankruptcy filing is an indicator of how tough the economic situation is for retailers. 

"This restructuring effort has failed because the retail economy has continued to decline," said Jerome Reisman, an attorney who specializes in bankruptcy cases. "This is a monster of evidence of that decline."

In the bankruptcy filing, Steve & Barry's claims that it has less than $50,000 in assets, and that it has debts between $100 and $500 million.

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