EVERETT — A Steve &Barry’s store in the Everett Mall is expected to shut down over the next few months, as the sluggish economy continues to hurt retailers.
“There’s an empty chair at the table. That’s sad,” said Linda Johannes, general manager for the mall that has about 120 stores.
Steve &Barry’s and its parent company plan to liquidate all inventory in remaining stores nationwide by the end of this year or early next year, according to a bankruptcy court filing.
The casual apparel retailer had filed for Chapter 11 bankruptcy in July as sagging consumer spending hurt its growth plans. The investment firms that bought the retailer in August originally planned to close some stores and continue operations with a smaller base. But in the filing Wednesday, they said they want to liquidate all remaining stores.
“For various reasons, including the general health of the American economy and the state of the retail market in particular, sales at all stores have been disappointing,” the documents filed with the Bankruptcy Court in the Southern District of New York stated.
Steve &Barry’s legal counsel Weil, Gotshal and Manges, of New York, declined to comment Thursday.
Steve &Barry’s LLC, of Port Washington, N.Y., had 240 locations when it was bought, and the new owners had planned to cut that down to 173 stores. The Everett location had been expected to remain open. But the drop-off in consumer spending made that impossible, according to the filing.
The company is not in compliance with some of its loan agreements and has no prospects for continued financing, according to the filing.
“The appropriate course of action to maximize value for the benefit of all of their stakeholders is an orderly liquidation in Chapter 11,” the filing said.
Steve &Barry’s has five stores in Washington state, according to the retailer’s Web site. The retailer joined the Everett Mall in June 2007, Johannes said.
It’s unknown when Steve &Barry’s will shut down in the mall, Johannes said. Mall officials have been talking with prospective tenants to fill the vacancy.
Steve &Barry’s is the latest casualty of the weak retail sector, as consumers cut discretionary spending amid a shaky job market, tight credit and prolonged housing slump.
Some stores that have declared bankruptcy, such as electronics retailer Circuit City Stores Inc., still plan to keep stores open. Others, including specialty retailer Linens ‘N Things and department-store chain Mervyns LLC, have begun to liquidate all of their stores.
Losing a tenant is always sad, Johannes said. When Steve &Barry’s shuts down in the Everett Mall, about 10 people will lose their jobs.
Nonetheless, the store’s liquidation will be good for holiday shoppers, Johannes said.
“There’s going to be some fabulous bargains during the holiday season,” she said.
The Associated Press contributed to this report.
Reporter Yoshiaki Nohara: 425-339-3029 or ynohara@heraldnet.com.
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