Stve & Barry’s running low on cash- Impending Bankruptcy?
Posted by v on June 27, 2008
Not a good problem to have - low cash flow. Guess they did not consult H&M on how to properly do this. Sell cheap clothes and make money.
According to “The Shophound” - Will Steve & Barry’s vanish from the public’s consciousness as quickly as it appeared, leaving its stable of celebrities with egg on their collective face?
Steve & Barrys has retained the services of Conway, Del Genio, Gries & Co., a restructuring firm specializing in turnarounds while Goldman Sachs Group scrambles to scrape together $30 million in emergency financing to cover a string of unpaid bills that are just coming to light. Despite growing their volume to nearly $1 billion, their profit margins are still so narrow that the chain was unable to properly finance its rapid expansion plans leaving local contractors, advertising bills and even some longtime vendors unpaid. There are rumors that the retailer may have to file bankruptcy as early as next week.
Things are looking dire for the company that gained notice when Stephon Marbury chose them to launch a line of affordable branded clothing, and later went mega-huge nearly overnight with the publicity from Sarah Jessica Parker’s Bitten line. A string of other celebrity endorsed and designed collections followed including efforts from Venus Williams, Amanda Bynes, surfer Laird Hamilton and golfer Bubba Watson.
Stay tuned.
This question of staying in business and selling so cheap has puzzled many for quite a while. Just check out Fashion Lawyers questions in May.
July 1, 2008 at 2:16 pm
[...] could stay in business while making clothing to sell at such low price points. Thanks to a linkback to my article, I was tipped off to trouble on the horizon for the mass-market [...]