Have you been wondering when, oh when the Steve & Barry's will finally open in the old Tower Records space on Broadway and West 4th Street? The answer could be never, since the retailer has some money problems. Namely they don't have any. The Shophound reports:
Steve & Barrys has retained the services of Conway, Del Genio, Gries & Co., a restructuring firm specializing in turnarounds while Goldman Sachs Group scrambles to scrape together $30 million in emergency financing to cover a string of unpaid bills that are just coming to light.
Despite growing their volume to nearly $1 billion, their profit margins are still so narrow that the chain was unable to properly finance its rapid expansion plans leaving local contractors, advertising bills and even some longtime vendors unpaid. There are rumors that the retailer may have to file bankruptcy as early as next week.
The reason they're low on cash? Their clothes are ridiculously cheap! Though the brand garnered much attention with celebrity-designed lines like Sarah Jessica Parker's Bitten, it can't have been that profitable, since every piece costs under $20.
We tried calling Steve & Barry's this morning, but they don't disclose the number of their corporate office and only have a toll-free number. So then we tried to call a random store in Massachusetts to see if they could put us through to corporate. When we finally got kind, real people on the line, they were obviously in another country (bad phone connections and all). It seems if you want to call a Steve & Barry's store in America, you (logically) have to be patched through from the other side of the world. Maybe the outsourcing is a cost-cutter? we thought. Or just a total waste of money.
Business Update: Steve & Barry's On The Ropes [Shophound]
Most Viewed Stories
The Blaze Has Permanently Banned Tomi Lahren
Orange Is the New Black’s Samira Wiley and Lauren Morelli Had a Funfetti-Inspired Wedding
Huma Abedin Is Reportedly Giving Anthony Weiner Another Shot
Ivanka Trump and Jared Kushner’s New Neighbors Are Justifiably Annoyed
United Airlines Gate Agent Made Teens in Leggings Cover Up
Uber Execs Went to an Escort Karaoke Bar in Seoul: HR Complaint
The Girls Pregnancy Plotline Says More About Us Than It Does About Hannah Horvath
Am I Cheap If I Hate Splitting the Check Equally?
These Women Started a Company to Teach White People How to Be Less Racist
Let’s Not Call Obama Stylish Just Yet
The Cut’s Latest Shopping FeaturesHow to Wear a Pink Suit
That millennial-friendly color strikes again.Cheap Thrill: A Frilled Tomato-Red Jumpsuit
Saucy.14 Things on Sale You’ll Actually Want to Buy: From a Backpack to a Bralette
This week, we dug through the darkest, deepest depths of the internet and found a back-to-school-worthy backpack and a $30 mint-green lamp.Treat Yourself: This Ring Will Make You Feel Like a Boss
A defense against impostor syndrome.Back-to-School Shopping Guide: The College Years
From fuzzy pillows to flatware.The 11 Best Pieces to Buy at Avenue 32’s Sale
Deep discounts, up to 80 percent off.Could These Be the Best Workout Leggings?
Meet the high-waisted version of ADAY's perpetually sold-out Throw and Roll leggings.The Perfect Summer Blanket Is Here
Never wake up in another night sweat again.Cheap Thrill: a Summer Dress You’ll Want to Wear Every Day
For work and weekend.How to Wear Two Bright Colors Together
Marigold and acid-green actually go together really well.
Grunge and glam had a baby together, and it's this clutch.Drake’s Is Now Collaborating With J.Crew
The British menswear brand, not the rapper.13 Basics on Sale, From a T-Shirt to a Tea Kettle
Here, some simple things on super-sale.Here’s Another Way to Get That Vetements Look
Champion's Reverse Weave collection is now sold on SSENSE.10 Bodysuits to Tuck Into Pretty Much Everything
Wear them with mom jeans, high-waisted skirts, work pants ...How to Make Your Work Clothes Less Boring
Take some liberties with this cool Tory Burch skirt.You Can Now Wear Your Succulents on Your Fingers
With the 13-piece Cactus de Cartier collection.Vivienne Westwood’s New York Debut, Unexpected Pool Floats, and a ’70s-Inspired Record Store
What's new in New York stores.Treat Yourself: A Bubblegum-Pink Varsity Jacket
Get one for everyone in your girl gang.9 Ways to Make Your Summer Wardrobe Less Boring
Don't freak out. Buy one of these nine things instead.