On Tuesday, the New York Times and Wall Street Journal reported that Steve & Barry’s, a clothing chain that tried to undercut competitors by selling celebrity fashion and shoes for less than $10, was preparing to file for bankruptcy protection. A private company, Steve & Barry’s had been one of the fastest-growing retailers in the country, “opening hundreds of stores selling clothes under the names of Sarah Jessica Parker, Venus Williams and Stephon Marbury.”
Today, news reports confirmed that Steve & Barry’s filed for Chapter 11 bankruptcy protection. Of particular interest is that the company’s management have held discussions with Sears Holdings Corporation (SHLD) about a possible bailout or an acquisition of some of its labels. Today’s AP news story also included the views of two analysts regarding a possible Sears deal. One analyst says this would be a bad deal, just two poor companies trying to get together. The other analyst disagreed saying that there would be a lot of people willing to go to Sears or Kmart for cheap, celebrity fashion.
As for my own personal opinion, I trust that Eddie Lampert will do the right thing. If Sears acquires Steve & Barry’s, it will be because Lampert feels it is an undervalued business or that it will help Sears become more of a retailer.
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