August 5, 2008
A Possible $163 Million Life Line for Steve & Barry's
After finding themselves in bankruptcy last month, Steve & Barry's, the clothing retailer boasting inexpensive designs from Sarah Jessica Parker and Stephon Marbury, announced that an investment company has offered them $163 million. Newsday reports that a subsidiary of Bay Harbor Management, which specializes in "purchasing and revitalizing troubled companies," has made the offer, in exchange for some assets and would want the company to continue to operate. The offer needs to be accepted by bankruptcy court and would establish "a minimum price for other bidders during the auction process." One retail consultant said it would be a "steal." It remains to be seen what will happen with its stores--some would probably be closed.
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Oops, I saw the picture of SJP and thought this was the Verazzano goat post. My bad.
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It is no doubt the S&B rascal group is playing dirty in the business also this deal.
First, creditors do not have sufficient information to determine whether or not it is a good deal. Steve & Barry's, LLC has not yet filed schedules listing its assets and liabilities. The Bankruptcy Rules require that schedules of assets and liabilities be filed no later than fifteen days after the bankruptcy petition is filed. Because of the complexity of the debtors, the court granted them an extension of time to file schedules. However, without schedules, neither the Bankruptcy Court nor the creditors have any information about what the assets of the company may be worth.
Second, a sale of all of the assets of the company ought to be done in the form of a Chapter 11 plan. Doing it as a plan would entitle creditors to vote whether to accept or reject the plan, and the plan would not be confirmed by the court unless a majority of creditors by number and two thirds by dollar amount in each class of claims voted to accept the plan. The Debtors would also be required to furnish adequate information to creditors including an estimate of what the creditors might receive if the sale is approved and what the creditors might receive if the assets of the company are liquidated by a bankruptcy trustee.
Third, no reason has been shown why this deal must be done right now. The sale ought to be postponed until the Debtors have filed schedules and furnished sufficient information for the Court and the creditors.
And the last is they had habit and get used to stole vendors goods, S&B get used to enforces overseas vendors to shipped the cargoes under D/P terms but cooperate with their appointed forwarder to released the containers without the surrender of the original Bill of Lading which is totally illegal, most of the overseas vendors even not yet to get pay for the cargoes shipped 12 months before, however, S&B kept placing orders and pushing shipments before 9th July but ever and never response for the payment issue even before filed Chapter 11, all these fraud business conduct will be continuous after Asset Purchase deal were done and there will be more victims get kill by them.