Retail Chain Said to Face Bankruptcy

Steve & Barry’s, the clothing chain that tried to undercut competitors by selling celebrity fashion and shoes for less than $10, was preparing to file for bankruptcy protection late Tuesday in the latest blow to shopping malls battered by the economic downturn. The company’s management held discussions over the Fourth of July weekend with Sears Holdings Corporation about a possible bailout or an acquisition of some of its labels, The New York Times reported citing people briefed on the talks. Sears and its Kmart unit, under the ownership of Edward S. Lampert, were said to remain interested in some of the labels, but that company was struggling as well. Steve & Barry’s, which is privately owned, had been one of the fastest-growing retailers in the country, opening hundreds of stores selling clothes under the names of Sarah... [read full story]