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beecharmer
Jul 3rd, 2008, 06:23 PM
Steve & Barry's facing bankruptcy

Commentary: Once red-hot retailer becomes cautionary tale

By MarketWatch




NEW YORK (MarketWatch) -- How quickly retail fortunes turn.


Not too long ago, Steve & Barry's LLC was lauded as a model of apparel retailing. The chain, based in Port Washington, N.Y., started out as a scrappy retailer selling college-themed apparel with not much to make it stand out.
Fast forward a few years and it had hit on a winning formula: selling celebrity designed and endorsed clothing and accessories, at dirt-cheap prices, with many items selling for less than $10.
Steve & Barry's attracted attention when it rolled out Starbury, a line of $14 basketball sneakers in association with National Basketball Association star Stephon Marbury of the New York Knicks, and perhaps its biggest coup was cutting a deal with actress and fashion icon Sarah Jessica Parker. Parker's line, Bitten, received loads of publicity and raised Steve & Barry's profile with the fashionista set.
The retailer's other celebrity partners include tennis star Venus Williams, surfer Laird Hamilton and actress Amanda Bynes. It was marketing genius, cheap "designer" clothes at a time when the economy was sputtering. They plugged into the fast-fashion trend and were more accessible than H&M, sassier than Zara.
Now, Steve & Barry's -- which has more than 200 stores -- is having trouble paying the bills and is considering bankruptcy and liquidation, The Wall Street Journal reported.
One problem was that most of its earnings came in the form of one-time payments from landlords, often for $2 million to $3 million, each time it opened a Steve & Barry's store, the Journal reported, and there was little profit from ongoing operations. New stores were unable to keep up the opening momentum.
The company could be looking at a bankruptcy as early as this week, the report said, and is trying to line up about $40 million in debtor-in-possession financing if it must file for bankruptcy protection. It has also reached out to Wal-Mart Stores Inc.but the response has not been positive.
Even though Steve & Barry's has seen some success, times have changed drastically from even 18 months ago, and retailers and investors are much more cautious about the types of business risk they will take on.
The retailer surely has its own particular problems and its decline cannot be blamed purely on the economy's gyrations, but Steve & Barry's fall from success story to cautionary tale illustrates the unforgiving nature of the retail industry right now.

-- Angela Moore (amoore@marketwatch.com), U.S. commentary editor http://i.mktw.net/mw3/News/greendot.gif

darrinbaker00
Jul 3rd, 2008, 06:30 PM
Steve & Barry's facing bankruptcy

Commentary: Once red-hot retailer becomes cautionary tale

By MarketWatch




NEW YORK (MarketWatch) -- How quickly retail fortunes turn.


Not too long ago, Steve & Barry's LLC was lauded as a model of apparel retailing. The chain, based in Port Washington, N.Y., started out as a scrappy retailer selling college-themed apparel with not much to make it stand out.
Fast forward a few years and it had hit on a winning formula: selling celebrity designed and endorsed clothing and accessories, at dirt-cheap prices, with many items selling for less than $10.
Steve & Barry's attracted attention when it rolled out Starbury, a line of $14 basketball sneakers in association with National Basketball Association star Stephon Marbury of the New York Knicks, and perhaps its biggest coup was cutting a deal with actress and fashion icon Sarah Jessica Parker. Parker's line, Bitten, received loads of publicity and raised Steve & Barry's profile with the fashionista set.
The retailer's other celebrity partners include tennis star Venus Williams, surfer Laird Hamilton and actress Amanda Bynes. It was marketing genius, cheap "designer" clothes at a time when the economy was sputtering. They plugged into the fast-fashion trend and were more accessible than H&M, sassier than Zara.
Now, Steve & Barry's -- which has more than 200 stores -- is having trouble paying the bills and is considering bankruptcy and liquidation, The Wall Street Journal reported.
One problem was that most of its earnings came in the form of one-time payments from landlords, often for $2 million to $3 million, each time it opened a Steve & Barry's store, the Journal reported, and there was little profit from ongoing operations. New stores were unable to keep up the opening momentum.
The company could be looking at a bankruptcy as early as this week, the report said, and is trying to line up about $40 million in debtor-in-possession financing if it must file for bankruptcy protection. It has also reached out to Wal-Mart Stores Inc.but the response has not been positive.
Even though Steve & Barry's has seen some success, times have changed drastically from even 18 months ago, and retailers and investors are much more cautious about the types of business risk they will take on.
The retailer surely has its own particular problems and its decline cannot be blamed purely on the economy's gyrations, but Steve & Barry's fall from success story to cautionary tale illustrates the unforgiving nature of the retail industry right now.

-- Angela Moore (amoore@marketwatch.com), U.S. commentary editor http://i.mktw.net/mw3/News/greendot.gif
1. You're two days late.
2. Steve & Barry's doesn't own EleVen, Venus Williams does. Steve & Barry's is the exclusive retailer of EleVen.

sharapovarulz1
Jul 3rd, 2008, 06:32 PM
So what does this mean for Venus and Eleven?

sharapovarulz1
Jul 3rd, 2008, 06:33 PM
1. You're two days late.
2. Steve & Barry's doesn't own EleVen, Venus Williams does. Steve & Barry's is the exclusive retailer of EleVen.

Doesn't matter question answered :)

ilovethewilliams
Jul 3rd, 2008, 06:52 PM
They opened too many stores in such a short amount of time it was bound to go bankrupt. That said I loved there selections though those starbury shoes are to die from.

Foot_Fault
Jul 4th, 2008, 12:31 PM
IDIOT...they don't own EleVen they carry the line... BIG DIFFERENCE. Vee can find another carrier/buyer if need be.

beecharmer
Jul 4th, 2008, 01:08 PM
IDIOT...they don't own EleVen they carry the line... BIG DIFFERENCE. Vee can find another carrier/buyer if need be.

That's interesting. This is from the website - "EleVen is a collection of women ’s athletic and lifestyle clothing and sneakers that Venus created with Steve & Barry’s®". That implies she no more owns EleVen as Britney Spears owns the fragrances she puts her name to.

Calvin M.
Jul 4th, 2008, 01:51 PM
Steve & Barry's = Bankrupt (my condolences)

Venus Williams = Wealthy (end of story)

Dorcas Monjimbo
Jul 4th, 2008, 01:59 PM
Oh then I didn't get things right. I thought EleVen was Venus's creation and if Steve and Barry are bankrupt, then Venus can look elsewhere and move on.

Venus+Serena#1fan
Jul 4th, 2008, 02:15 PM
Do people really need to get all testy and call each other idiots over this?
kinda sad..

spartanfan
Jul 4th, 2008, 02:47 PM
Venus owns Eleven, and its just being carried by S&B, the article is inaccurate.

Tech1
Jul 12th, 2008, 05:13 PM
STAR LINES DODGING STEVE & BARRY HIT


By JAMES COVERT

Last updated: 1:08 pm
July 10, 2008
Posted: 3:23 am
July 10, 2008

Steve & Barry's bankruptcy filing yesterday didn't take a bite out of Sarah Jessica Parker, whose apparel brand Bitten has been paid its royalties in full, a source told The Post.

Nevertheless, the "Sex and the City" star, who licensed her low-priced clothing line to the flamed-out retailer last year, is negotiating to possibly move it to other retailers including Sears Holdings, sources said. Alternatively, some have speculated that Steve & Barry's could be sold outright to Sears or another buyer.

The Sears and Kmart chains, owned by billionaire hedge fund magnate Eddie Lampert, are looking to spruce up their notoriously dowdy apparel offerings - most recently with a proprietary line at Sears from rapper L.L. Cool J.

Port Washington, LI-based Steve & Barry's said it was forced into Chapter 11 by turmoil in the credit markets and a swooning economy, which overwhelmed the razor-thin margins on swaths of items it sold for under $10.

Still, the company's comparable sales were up a healthy 15 percent during the first five months of the year, with its celebrity lines performing particularly well.

In addition to Sarah Jessica Parker's line, Steve & Barry's has licensed Starbury athletic sneakers from NBA player Stephon Marbury, and the Eleven clothing line by tennis pro Venus Williams. Those celebrities also have been paid full royalties on recent robust sales, sources said.

In turn, the stars "continue to express an incredible level of support as we work through this difficult time," Steve & Barry's marketing chief Howard Schacter said.

It's typical for licensed brands to negotiate a move when a retailer goes bankrupt, said Michael Appel of Quest Turnaround Advisors. "The issue is, is Steve & Barry's going to be sold, restructured or liquidated?" Appel said.

mykarma
Jul 12th, 2008, 05:19 PM
Do people really need to get all testy and call each other idiots over this?
kinda sad..
I agree

serenus_2k8
Jul 12th, 2008, 06:37 PM
OMG what a disaster for poor Vee! Still, its nothing to do with her line obviously, so a new buyer wont be hard :hug:

I dont understand what caused the bankruptcy ??

Infiniti2001
Jul 12th, 2008, 06:47 PM
OMG what a disaster for poor Vee! Still, its nothing to do with her line obviously, so a new buyer wont be hard :hug:

I dont understand what caused the bankruptcy ??

Why is it a diasaster? She's been paid her full royalities--- If the company goes completely under she just has to shop around for another who is willing to carry her affordable line :shrug:

Rocketta
Jul 12th, 2008, 07:56 PM
It looks like Sears may buy out S&B, which would be awesome if Vee's stuff was carried in Sears. :)

BTW, I love the t-shirts at S&B if I had known they were going out of business I would've bought some more. :)

aznunit2k5
Jul 12th, 2008, 08:06 PM
Well I think EleVen is going to be renamed...

:) To "Chapter EleVen"

Kenny
Jul 12th, 2008, 08:57 PM
I'm confused as to why this thread is still open? It's a repost as I posted this way back.

serenus_2k8
Jul 12th, 2008, 08:59 PM
Well I think EleVen is going to be renamed...

:) To "Chapter EleVen"

Why :confused:

mirzalover
Jul 12th, 2008, 09:46 PM
Why :confused:

If you file for Chapter 11 you are bankrupted

harloo
Jul 12th, 2008, 09:50 PM
Well I think EleVen is going to be renamed...

:) To "Chapter EleVen"

:fiery::haha::haha:You're wrong for this joke but I admit it was funny.

Venus will be alright though, she can always shop EleVen to another retailer. I don't see how this is a big deal, companies go under everyday.

williams fan
Jul 12th, 2008, 10:16 PM
do you guys think Venus should go to walmart!

court70
Jul 12th, 2008, 10:27 PM
do you guys think Venus should go to walmart!

If she ever goes to Walmart she can count me out. I refuse to shop at walmart, I would not even want they stuff for free. Walmart treats its employees like shit and would not give them any medical benefits and that is one of my pet peeves.

williams fan
Jul 12th, 2008, 10:28 PM
If she ever goes to Walmart she can count me out. I refuse to shop at walmart, I would not even want they stuff for free. Walmart treats its employees like shit and would not give them any medical benefits and that is one of my pet peeves.

what about target.

serenus_2k8
Jul 12th, 2008, 10:31 PM
If you file for Chapter 11 you are bankrupted

Oh I think this is an American thing because I've never heard of it.



Eleven isnt bankrupt though, in face doesnt the article say that Eleven was paid in full? Its only S&B's which is bankrupt.

court70
Jul 12th, 2008, 11:51 PM
what about target.

No problem. She will have my support.

debopero
Jul 13th, 2008, 03:37 AM
ewwww.. what if she goes to walmart