Steve & Barry's names BH S&B Holdings as successful bidder

By Caroline Salls

Pittsburgh, Aug. 21 - Steve & Barry's LLC said BH S&B Holdings LLC, a newly formed affiliate of investment firm Bay Harbour Management, was the successful bidder at the auction for some of Steve & Barry's assets, according to a company news release.

The sale is expected to be completed Monday.

Under the terms of the $168 million purchase agreement, the majority of Steve & Barry's 276 stores will continue to serve customers nationwide.

According to the release, BH S&B Holdings has not decided which Steve & Barry's stores will close or when, although an announcement is expected to come in the next week.

In addition to acquiring merchandise inventories and transfer rights to Steve & Barry's store leases, BH S&B Holdings will acquire all Steve & Barry's intellectual property rights, including its celebrity and brand licenses, and the company's key facilities, including its Port Washington, N.Y., headquarters, Columbus, Ohio, distribution center and some overseas offices.

"There's a fundamentally strong business model at Steve & Barry's that just needs some fine-tuning to get it back on a growth track in order to reach its full potential," Bay Harbour Management managing principal Douglas Teitelbaum said in the release.

Steve & Barry's co-founders Steve Shore and Barry Prevor are also investors in BH S&B, the release said.

Steve & Barry's, a Port Washington, N.Y.-based national apparel and accessories retailer, filed for bankruptcy on July 9 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 08-12579.

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