Steve & Barrys® Files Stalking Horse Agreement

Agreement Calls for Bay Harbour Affiliate to Purchase Steve & Barry's as a Going Concern, Subject to Negotiation of Acceptable Renegotiated Store Lease Package

Failing Renegotiated Store Lease Package, Agreement Calls for Alternative Sale of Company's Assets

PORT WASHINGTON, N.Y.--(BUSINESS WIRE)--Steve & Barrys LLC today announced that it has filed with the U.S. Bankruptcy Court for the Southern District of New York a "stalking horse" Asset Purchase Agreement with BH S&B Holding LLC, a newly formed subsidiary of investment firm Bay Harbour Management. Under the terms of the agreement, BH S&B Holdings would acquire certain of the companys assets for $163 million. Subject to acceptable negotiation of lease terms prior to the final auction date, BH S&B Holdings expressed intent is to continue to operate the chain of Steve & Barrys retail stores as a going concern, with current staff and key facilities, including the companys New York headquarters, Columbus, Ohio distribution center, and certain overseas offices.

The assets to be acquired include but are not limited to: certain Steve & Barrys store leases; all Steve & Barrys merchandise, with the exclusion of any product located at stores not purchased by BH S&B Holdings; and all Steve & Barrys intellectual property rights, including its celebrity and brand licenses. Further due diligence will determine which Steve & Barrys renegotiated store leases BH S&B Holdings would acquire should the Asset Purchase Agreement be approved by the Court. The Company has further entered into an agency sale agreement for inventory in stores where the Company and BH S&B Holdings cannot accomplish an appropriate package of renegotiated leases and other conditions. In this circumstance, Hilco Merchant Resources LLC becomes the stalking horse bidder with intention of conducting a final sale of the companys inventory.

Subject to Court approval, the stalking horse proposal will serve as the opening bid during an auction process that is scheduled to take place in August, and will be subject to higher and better offers.

Bay Harbour Management is an SEC registered investment advisor with significant experience in purchasing distressed companies and effectuating their turnaround. The firms holdings have included the retailer Barneys New York, Telcove, and the rebranding and turnaround of the former Aladdin Casino, now operating on the Las Vegas strip as the Planet Hollywood Resort and Casino.

About Steve & Barrys

New York-based Steve & Barrys is a leading national casual apparel retailer that offers high quality merchandise at astonishing low prices for men, women and children. Founded in 1985, the company operates 276 anchor and junior anchor shopping center and mall-based locations throughout the U.S. At STEVE & BARRYS ® stores, shoppers will find brands they cant find anywhere else, including the BITTEN collection, the first-ever apparel line created by actress and global fashion icon Sarah Jessica Parker, and the STARBURY collection of athletic and lifestyle apparel and sneakers created with NBA ® star Stephon Marbury. Steve & Barrys is also the exclusive home of the DEAR collection by Amanda Bynes, the BIG BEN WALLACE collection , the ELEVEN BY VENUS WILLIAMS collection, the BUBBAGOLF collection by professional golfer Bubba Watson, and the WONDERWALL collection by surfer Laird Hamilton. Additional information and store locations can be found at


Kekst and Company
Wendi Kopsick/Jim Fingeroth, 212-521-4867/4819
Steve & Barrys
Rachel Brenner, 516-740-7910

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