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Steve & Barry's Heads to Chapter 11

Deep-discount fashion retailer can't find rescue funding

By Jim O'Neill,  Newser User

Posted Jul 9, 2008 7:51 AM CDT

(Newser) – Dress-down discount clothing retailer Steve & Barry’s, which launched its first store nearly a quarter-century ago, could file for Chapter 11 bankruptcy protection as early as today after a fruitless search for rescue financing, reports the Wall Street Journal. The trendy retailer could close all of its 275 outlets, many of which are cavernous anchor stores in financially-squeezed malls.

The company, which employs some 17,000, has struggled as consumers have closed their wallets and increasing fuel prices have cut into the retailer’s already thin margins. Adding to the distress are high licensing fees for products like actress Sarah Jessica Parker’s exclusive Steve & Barry’s clothing line.

Steven Shore, the co-CEO of Steve & Barry's clothing store, watches a crowd of shoppers in the store in New York.
Steven Shore, the co-CEO of Steve & Barry's clothing store, watches a crowd of shoppers in the store in New York.   (AP Photo/Mark Lennihan)
A sign advertises Sarah Jessica Parker Parker's new clothing line at Steve & Barry's in Herald Square on June 7, 2007 in New York City.
A sign advertises Sarah Jessica Parker Parker's new clothing line at Steve & Barry's in Herald Square on June 7, 2007 in New York City.   (Getty Images)
Sarah Jessica Parker introduces her Bitten line of women's fashions to shoppers at a Steve & Barry's clothing store in New York.
Sarah Jessica Parker introduces her Bitten line of women's fashions to shoppers at a Steve & Barry's clothing store in New York.   (AP Photo/Mark Lennihan)
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