With most observers predicting that it was headed for liquidation, bankrupt discount clothier Steve & Barry's has found a buyer, according to The Wall Street Journal (subscription required).The company has agreed to be acquired by turnaround firm Bay Harbour Management for $163, with Bay Harbour planning to operate the company as a going concern, contingent upon the ability to renegotiate leases with malls that house the company's stores.
But it's a little more complicated than that. Bay Harbour is the stalking horse bidder, which means that, assuming the deal secures bankruptcy court approval, the $163 million offer will serve as opening bid for an auction of the company's assets. If no one else steps forward with a high offer -- or one that is somehow better -- Bay Harbour will have its prize.
This is obviously fantastic news for the company's employees, suppliers and other affiliates, but in a larger sense, it's wonderful for the young people who rely on its 276 store for reasonably fashionable and fabulously affordable clothing -- like NBA-star endorsed basketball shoes for under $10!
I've followed the sage of this company's demise closely, hoping that it would pull through because of all the money it saves college students. While there's still plenty that could go wrong, it's looking more likely that Steve & Barry's will pull through than it has in more than a month.
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Reader Comments (Page 1 of 1)
8-08-2008 @ 5:55PM
Ivan said...
It is no doubt the S&B rascal group is playing dirty in the business also this deal.
First, creditors do not have sufficient information to determine whether or not it is a good deal. Steve & Barry's, LLC has not yet filed schedules listing its assets and liabilities. The Bankruptcy Rules require that schedules of assets and liabilities be filed no later than fifteen days after the bankruptcy petition is filed. Because of the complexity of the debtors, the court granted them an extension of time to file schedules. However, without schedules, neither the Bankruptcy Court nor the creditors have any information about what the assets of the company may be worth.
Second, a sale of all of the assets of the company ought to be done in the form of a Chapter 11 plan. Doing it as a plan would entitle creditors to vote whether to accept or reject the plan, and the plan would not be confirmed by the court unless a majority of creditors by number and two thirds by dollar amount in each class of claims voted to accept the plan. The Debtors would also be required to furnish adequate information to creditors including an estimate of what the creditors might receive if the sale is approved and what the creditors might receive if the assets of the company are liquidated by a bankruptcy trustee.
Third, no reason has been shown why this deal must be done right now. The sale ought to be postponed until the Debtors have filed schedules and furnished sufficient information for the Court and the creditors.
And the last is they had habit and get use to stole vendors goods, S&B get use to forces overseas vendors to shipped the cargoes under D/P terms but cooperate with their appointed forwarder to released the containers without the surrender of the original Bill of Lading which is totally illegal, most of the overseas vendors even not yet to get pay for the cargoes shipped 12 months before, however, S&B kept placing and pushing shipment before 9th July but ever and never response for the payment issue even before filed Chapter 11, all these fraud business conduct will be continuous after Asset Purchase deal were done and there will be more victims get kill by them.