Bankrupt Steve & Barry's wants to make short work of a reorganization or sale, and lack of cash as it nears the important back-to-school season is a big reason.
The company, which filed for Chapter 11 protection on Wednesday, is seeking Manhattan bankruptcy court approval for an expedited hearing for an approval of procedures in connection with the sale of all or most of its assets.
The retailer wants a hearing on bidding procedures on July 16; an auction on July 29, and a hearing to approve any sale on July 31. Steve & Barry's said in court papers that business reasons support a timely resolution of the auction, citing fluctuation in revenue depending on the selling season. It said the b-t-s season that begins in early August is a significant selling period at retail, and holding a sale before the start of b-t-s sales is "critical to ensure that any inventory sale yields the highest and best return for all stakeholders."
Also critical, the retailer said, was that it entered Chapter 11 "with no unencumbered cash and no debtor-in-possession financing. Without any cash, the debtors cannot replenish their inventory and, therefore, the value of their business is declining on a daily basis."
The firm is operating with limited access to cash from sales of liquid assets while in bankruptcy, subject to liens of lenders General Electric Capital Corp. and PrenSB.
Court papers said that as of May 31, the Port Washington, N.Y.-based retailer of cheap, chic apparel, footwear and accessories had consolidated assets of $693.5 million and liabilities of $638 million.
Consolidated revenues for the 12 months ended May 31 were $656.6 million, well below the figure of $1 billion or more estimated by market sources before the filing. The company said it employs about 8,600 domestic employees and 1,100 internationally.
About 7,300 are part-time hourly workers and 1,300 are full-time employees. The company slashed 172 corporate and field positions on Wednesday.
In the court papers, Steve & Barry's said its retail locations serve "economically challenged areas that other retailers have abandoned because of household income levels, population trends or crime rates."
The company operated 276 stores in 39 states at the time of the filing.
During its expansion, the retailer diversified its business beyond licensed collegiate apparel and lifestyle brands to include private label casual apparel and accessories for men, women and children, and exclusive celebrity-branded lines of apparel, the best known of which are Bitten by Sarah Jessica Parker, and Starbury from Stephon Marbury. The company also has celebrity and media licensing arrangements with Amanda Bynes, Venus Williams and CBS Consumer Products.
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye