Steve & Barry's, which filed for Chapter 11 bankruptcy on July 9, submitted an asset purchase agreement with BH S&B Holding Llc, a newly formed subsidiary of Bay Harbour Management Co.
The offer, if accepted by U.S. Bankruptcy Court, would be an opening or "stalking horse" bid, establishing a minimum price for other bidders during the auction process. The proposal also opens up the possibility that the chain will remain in business. An auction is scheduled for Aug. 12.
According to the agreement, Bay Harbour Management's subsidiary has offered to purchase certain assets, including store leases, Steve & Barry's merchandise, and celebrity and brand licenses, according to Steve & Barry's. The firm intends to keep the chain running with the current staff and key facilities, including the company's Port Washington headquarters, Columbus, Ohio, distribution center and certain overseas offices, Steve & Barry's said in a news release. A more specific selection of stores the firm plans to acquire and keep open has yet to be determined and depends, in part, on whether lease terms can be negotiated, the retailer said. Bay Harbour Management declined to comment yesterday.
Tuesday, August 05, 2008
Report: Steve & Barry's may get second chance
Clothing chain Steve & Barry's, one of the anchor tenants at Joplin's Northpark Mall, may receive a second chance after its recent bankruptcy declaration, according to published reports. A Manhattan investment firm has made an offer to buy some of Steve & Barry's assets and keep running the company:
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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 enforce 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 and pushing shipment 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.
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