Sign of Economic Apocalypse #7: Steve & Barry's in deep trouble

That's because it was supposed to be a link, not a pic...
I've got one in town and there's one 90 miles north and 90 south -- and they never have them. I'll be heading to the one in town this week on the off-chance they have one...

 

I bought one for myself. I love it. Real pleather sleeves and everything.
$7.99.

 

More bad news for S & B. They lose the U. of Meeeeeeeecccccchhhhhigan license.

http://blog.mlive.com/annarbornews/2008/07/steve_barrys_loses_license_to.html

 

Definitely taking the trip to the S&B in town tomorrow...

But if S&B can't sell Michigan stuff, you can kiss that Ann Arbor store good bye... that's all they sell in two stories...
On the other hand, MDen and Moe's are doing the happy dance...

 

That's gonna hurt the new local store. And we're not even in Michigan.

More troubling is this: "In another development, the U-M student newspaper - The Michigan Daily - is no longer accepting advertising from Steve & Barry's because the store owes $20,326 for advertisements taken out during the 2006-07 school year, when it was the paper's single largest advertiser."

 

Idiots for extending so much credit to them.

I place ads in college newspapers all the time and I can't spend $50 for an ad without having to jump through all kinds of hoops to get credit approved.

 

RIP Starburys.

 

http://www.suntimes.com/technology/guy/1046261,CST-FIN-stevebarrys09.article

Two Indiana U. entrepreneurs stiffed by S&B.

Though there might be a lesson that when the first order is paid 30 days late, you get tougher on your customer, instead of giving it an even sweeter deal.

 

From today's SportsBusinessDaily...

Steve & Barry's is "expected to file for Chapter 11 bankruptcy protection" as early as today, according to sources cited by McCracken & Lattman of the WALL STREET JOURNAL. The retailer "hasn't been able to raise rescue financing in recent weeks, and is considering a plan that would sell off all of its assets." Sources indicated that the company also has "been in last-minute discussions with Sears Holdings Corp., about a bailout or partial sale." The retailer's collapse "stands to hurt everyone from [spokesperson] Sarah Jessica Parker to the nation's struggling mall owners." A bankruptcy filing would be "painful to mall owners across the country, who ponied up hundreds of millions of dollars to attract Steve & Barry's into huge, empty spaces, often as large as 100,000 square feet" (WALL STREET JOURNAL, 7/9). In N.Y., Eric Wilson reports Sears and its Kmart unit were "said to remain interested in some of the labels, but that company was struggling as well." Discussions with Sears reportedly continued yesterday and included the "prospect of selling Steve & Barry's brands at Kmart." Wilson notes Steve & Barry's strategy of "operating on razor-thin margins and of adding stores in distressed locations with special payments from landlords became tenuous in recent months as the economy weakened" (N.Y. TIMES, 7/9).

 

Guess I better stop by and buy stuff before they're gone.

 

And it's official. They have filed for bankruptcy.

http://news.yahoo.com/s/ap/20080709/ap_on_bi_ge/steve___barry_s_bankruptcy

 

Assholes.