Steve & Barry's contemplates bankruptcy

The Capital Times  —  7/01/2008 3:58 pm

Retailer Steve & Barry's LLC is running out of cash and is preparing to close more than 100 of its stores as it contemplates bankruptcy, according to a report in The Wall Street Journal.

The Port Washington, N.Y.-based apparel chain is considering a complete liquidation of its assets if it cannot find emergency financing, according to the report.

The company's bankruptcy counsel, Weil Gotshal & Manges LLP last weekend prepared for a potential bankruptcy filing as soon as this week, The Journal reported.

Sources told The Journal that Steve & Barry's officials were reaching out to other retailers, such as Wal-Mart Stores Inc., Gap Inc. and Sears Holding Corp., to see if they have any interest in investing in the company.

Steve & Barry's operates nine stores in Wisconsin, including three in Madison; 638 State St. in downtown Madison, East Towne Mall and West Towne Mall.

The Capital Times  —  7/01/2008 3:58 pm