Steve & Barry's LLC has filed for Chapter 11 and is exploring a potential sale of the company or its assets. The clothing retailer blamed its shortage of liquidity on the credit market volatility and general economic conditions, which impacted the company's store opening plans and borrowing capacity.
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Steve & Barry's started cutting back Wednesday with the elimination of 172 corporate and field employees.
"Unfortunately, in the current credit and economic environment, this has not been enough. High costs of materials and fuel prices have increased our cost of goods and cost of operating. At the same time, our customers are not in a position to pay higher prices, impacting our operating margins," said the founders Steve Shore and Barry Prevor in a statement. - Maria Woehr
See Steve & Barry's bankruptcy petition (pdf)
