Steve & Barry's, the college town clothier known for selling reasonably good quality clothing for under $10, will live to fight another day.The Wall Street Journal reports (subscription required) that Bay Harbour Management LC will purchase the company's assets out of bankruptcy for $168 million, and has been negotiating "around the clock" to secure lease concessions from landlord, with the goal of keeping about 150 of the company's 276 stores operating.
"Value is king today," Bay Harbour managing principal Douglas Teitlebaum told the Journal. "The customer still wants to shop but they must get value, and this company offers better value than I've seen anywhere."
I think he's absolutely right. The company expanded far too aggressively, but its same store sales growth was strong, and its value proposition appears to resonate strongly with consumers. The continued operation of the stores will be a victory for college students all over the country who rely on the chain to dress well on a budget.
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