Steve & Barry’s searches for new financing, ponders liquidation
Discount retailer Steve & Barry’s may be forced to close 100 stores or even worse go into an all out liquidation.
As a Steve & Barry’s customer, I have always wondered how they were able to stay in business. My friend Rena introduced me to Steve & Barry’s early last year and can bear witness to me asking “How do they do this?” on my first trip to their Deptford, New Jersey location.
The prices were so low that I just didn’t see how the company could be profitable. Well, they weren’t profitable and when something looks too good to be true, it probably is.
The owners are hoping to receive some type of emergency financing and according to the Wall Street Journal, Steve & Barry’s may be looking to Edward “Eddie” Lampert as a potential investor.
About Mr. Lampert…this hedge fund manager set the income record for financial managers on Wall Street back in 2004, earning over $1 billion in one year.
Maybe Mr. Lampert can share some of his income with Steve & Barry.
Tags: ed lampert, steve & barry's
3 opinions for Steve & Barry’s searches for new financing, ponders liquidation
Tim Turner
Jul 2, 2008 at 5:34 pm
Speaking of hedge fund managers with interesting pasts… Samuel Israel III isn’t dead after all (you’re shocked, I know) AND he voluntarily turned himself in today. Evidently hiding in an RV, eating Top Ramen and Easy Mac, for less than a month is worse than what he expects from prison. I didn’t think 20 years behind bars did him justice for ruining a few (many?) peoples’ lives, but I feel better knowing that a few extra years will be tacked on now. For added satisfaction, I suggest that Mr. Israel’s clients look into if I know anyone in whichever prison he gets placed.
Mark DallePazze
Jul 5, 2008 at 2:08 pm
My sister is (or was) the Director of Marketing for Steve and Barry’s before she decided a couple of weeks ago that she didn’t want to put up with the company anymore. Over the past year, Steve and Barry’s has had many problems, most of which originated with the owners. I personally believe that the majority of their financial issues have to due with the weak dollar as most of their products come from overseas and have been costing more and more over the past couple years as the dollar has dropped. It’s actually kind of ironic that the undoing of Steve and Barry’s is a result of their imported products. This used to be their strength and source of success when they were cheaper than buying locally.
Jacob Hess
Jul 9, 2008 at 10:19 pm
That’s funny, I think its probably similar to a lot of stores I see in the mall without anyone ever buying anything or even the dollar stores that I imagine just make ends meet with sales. And it sounds like Mr. Lampert could buy a really huge stake in the company if he wanted to like 20% or more. I wonder what his take on the situation would be; if he sees any real profit potential there.
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