Steve & Barry's files for bankruptcy

PORT WASHINGTON, N.Y. Steve & Barry’s has filed for Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York, to address its financial challenges, the company reported.

The company said that the commencement of Chapter 11 cases was based on a combination of factors, including a liquidity shortfall as a result of credit market volatility and general economic conditions, which, in turn, have impacted the company’s store opening plans and borrowing capacity.

The company noted that it has performed very well from a sales perspective, with total sales in the first five months of 2008 up 70%, average store sales up 25%, and comparable -tore sales up 15%.

Steve & Barry’s founders and co-ceos Steve Shore and Barry Prevor commented, "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. Our customers are feeling the pain of high food and gas prices and declining home values, and many of them are being forced to shop closer to their homes and cut back on discretionary purchases. The generally poor environment for apparel retailers has reduced funding to our suppliers, landlords, and to our company. It has become increasingly difficult for us to continue operating normally under these circumstances. "