Aggressive exapansion may be the reason for a bankruptcy filing, a BloggingStocks post noted on June 21. The discount clothing chain has over 200 stores, and it may have to close up to half just to survive. Steve & Barry's is apparently seeking $40 million in debtor-in-possession financing, half of which would come from Angelo, Gordon & Co., notes the Journal.
Steve & Barry's lead lender, the commercial-lending unit at General Electric Co., may also be exploring alternatives to see if Wal-Mart Stores Inc., Gap Inc. and Sears Holding Corp. would want to invest in the company. However, it seems unlikely that troubled Sears or even the Gap would likely want to take on Steve & Barry's.
Perhaps a more likely buyer might be TJX Cos., which five years ago bought Bob's Stores out of bankruptcy. Plus, Steve & Barry's larger footprint would complement the smaller Bob's chain, which only operates 30 stores in the Northeast.
Many other retailers have recently filed for bankruptcy including:
Goody's Family Clothing Inc.
Dawahare's of Lexington LLC
Sharper Image Corp.
Bellach's Leather Furniture for Living Inc.
Room Source LLC
- Maria Woehr
Comments
Steve & Barry's LLC may be the next retailer to file for bankruptcy, according to The Wall Street Journal. A Chapter 11 filing for the privately owned clothing retailer may come as early as this week. 
DO you think Rite Aid will file Bankruptcy?