Saturday, August 23, 2008
The clothing company is to be acquired for $163 million.
NEW YORK (AP) — A U.S. Bankruptcy Court judge on Friday approved a $163 million acquisition of discount clothing chain Steve Barry’s.
BHY Holdings LLC, an affiliate of investment firms Bay Harbour Management and York Capital Management, said earlier this week it had won a bid to buy Steve Barry’s for $168 million. A company representative was not immediately available to discuss the court’s decision or say why the purchase price had changed.
The deal went before U.S. Bankruptcy Court Judge Allan Gropper in New York on Thursday and Friday. The acquisition is expected to be completed Monday.
Steve Barry’s LLC, based in Port Washington, N.Y., filed for Chapter 11 bankruptcy protection in July after ambitious growth plans were hurt by slower spending by consumers and the credit squeeze.
Under the terms of the deal, the new owners will acquire nearly all the assets of Steve & Barry’s and keep the majority of its 276 stores open. The new ownership said it will decide within a week which stores will close based on their profitability.