Discount clothing retailer Steve & Barry LLC's has a new lease on life, purchased out of bankruptcy on Aug. 22. Now, the Port Washington, N.Y.-based company made a new hire in Harold Kahn, who will assume the chief executive position. Kahn is no stranger to struggling retailers as he was president of Abraham and Straus and Montgomery Ward, both companies which shut their doors years ago because of waning sales and tough competition.
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Kahn will have his hands full as Steve & Barry's reconfigures itself, operating a smaller base of 173 of its original 276 locations, during one of the toughest economic backdrops in recent memory. But more optimistic retail experts say that restarting in these tough financial times may be an advantage to Steve & Barry's as consumers may flock to their doors, looking for more bang for their buck, shopping for their niche of celebrity-endorsed fashions for less than $20.
One thing Kahn is certainly concerned about is the frozen credit markets. The company's future prospects may rely on some short-term loans to spark some growth.
"As we go forward and we buy merchandise and re-merchandise, we would have to add a lot of volume to generate cash," Kahn told Newsday. But Kahn notes "whether the credit markets will be there" for these initiatives will be a bigger question mark. - Gerald Magpily
See Newsday article
See Dealscape: Steve & Barry's employees threatened by vendor e-mails
