The Power of Retail

Steve & Barry’s clothing company will likely be filing for bankruptcy this week itself. The company has been trying to raise finances in the past few weeks but has not been able to do so and will not have to sell its assets. The company has been discussing with Sears regarding a partial sale or a bail out. If the stores close, it will be a huge blow to the hundreds of mall owners who paid the company to move into empty spaces in their properties. If all of their 275 stores close, it will be the end of all 17,000 employees as well.

Steve & Barry’s has an annual turnover of $1.1 billion, but has been severely affected by its policy of keeping a razor thin profit margins. The company also makes a practice of opening stores in run-down and distressed locations on getting special payouts from the landlords, which has become unsustainable as the economy has weakened. Besides selling sports logo products, the company has become famous for its tie up with Sarah Jessica Parker for her Bitten line of clothing.

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