Steve & Barry's was an American retail clothing chain, featuring casual clothing, footwear and accessories. Headquartered in Port Washington, New York, the chain operated 276 stores in 39 states before liquidating throughout 2008 and 2009.
The chain's origin was based on various university campuses across the United States. Until 2007, it was called Steve & Barry's University Sportswear, and the chain specialized in college-related clothing and private-label casual clothing. The chain dropped the "University Sportswear" tagline after securing licensing agreements with several celebrities to develop and distribute private-label lines of clothing designed or inspired by each of them, in an attempt to expand the chain's customer base.
History
Founded by Steven Shore and Barry Prevor at the University of Pennsylvania in 1985 while Prevor was an undergraduate student, Steve & Barry's became a local popular destination due to its low prices compared to other university bookstores and gift stores. The success of the original store led to the opening of locations on university campuses, including Michigan State University, the University of Michigan, the University of Illinois, the University of Wisconsin–Madison, Indiana University, Rutgers University, the University of Colorado at Boulder, and Purdue University.
In 1998, Steve & Barry's opened its first large mall-based store at Great Lakes Crossing in Auburn Hills, Michigan. The new line of products included business casual, denim, active wear, outerwear, footwear and T-shirts. In addition, the company began marketing "All-American" brands such as Hershey's, Marvel Comics, Ford, WWE, My Little Pony, Monopoly, and General Mills cereals, amongst others.
The continuing product line expansion and store growth allowed the company to achieve a 50% annual growth rate over more than two decades. The International Council of Shopping Centers named Steve & Barry’s as the “Hot Retailer of the Year” in 2005, along with Apple Computer and Williams-Sonoma, for generating the most mall traffic and cachet. Brandweek named Steve & Barry’s 2007 Marketer of the Year. The Company’s in-house video productions won a 2007 Silver Telly Award for distinction in creative work. By 2007, Steve & Barry’s was ranked in the 400 largest private companies in America by Forbes Magazine. Founders Steve Shore and Barry Prevor were awarded the Ernst & Young Entrepreneur of the Year Award for 2006 in a metropolitan New York Area 20th anniversary event with more than 500 people in attendance.
For several years, the company was the fastest growing specialty retailer in the United States, adding of new retail space in 2005, of new retail space in 2006, and of new retail space in 2007; more than the combined total of specialty clothing competitors Gap (Gap, Banana Republic, Old Navy), Abercrombie & Fitch, American Eagle Outfitters, and Pacific Sunwear. Steve & Barry's was among the top 10 builders of new square footage among all retailers in the United States when including big-box chains like Wal-Mart, Target, Home Depot, Walgreens, Costco, etc.
In 2006, private equity firm TA Associates closed a minority investment in the company for an undisclosed amount. A group of investment firms led by Bay Harbour Management, former owner of Barneys New York luxury department store chain, later purchased the company for $168 million. In early 2008, GE Commercial Finance Corporate Lending provided a $197 million (~$ in ) asset-based credit facility to the company, for working capital to replace Steve & Barry's credit facility from the CIT Group.
On July 9, 2008, the company filed for Chapter 11 bankruptcy reorganization, citing a liquidity squeeze and the economic downturn, while in discussions with potential strategic and financial partners for a stronger Steve & Barry's to emerge. While initial results were promising, reorganization efforts ultimately failed, and successor parent company BH S&B Holdings announced the liquidation of its 173 remaining stores at the height of the credit crisis on November 27, 2008, which later converted the Chapter 11 reorganization into a Chapter 7 liquidation.