Store’s future still uncertain

BURBANK — The fate of the Steve & Barry’s in the city is still uncertain despite Monday’s announcement of a bid that could help get the company out of bankruptcy.

The corporate chain filed for Chapter 11 bankruptcy protection July 9, citing a worsening economy as a reason for its decline.

The retailer — which has 276 stores nationwide, including a location at the Burbank Town Center — boasts celebrity clothing lines such as Bitten by Sarah Jessica Parker and items priced below $10.98.

“High costs of materials and fuel prices have increased our cost of goods and cost of operating.  .  .  At the same time, customers are not in a position to pay higher prices, impacting our operating margins,” Steve & Barry’s founders Steven Shore and Barry Prevor said in a news release.

BH S&B; Holdings, a subsidiary of Manhattan- based investment firm Bay Harbour Management, offered $163 million Monday to acquire a certain amount of Steve and Barry’s assets.

The stalking horse proposal, which is subject to court approval, will serve as the opening bid during the auction and will be subject to higher and better offers, according to the news release.

Steve & Barry’s is only weeks away from going up for auction.

Decisions have yet to be made about the future for individual stores, Steve and Barry’s spokeswoman Rachel Brenner said.

The Burbank location has provided shoppers with a cheap alternative to high-end retailers since its grand opening in November 2007.

“I come here all the way from Lancaster because I can buy stuff for my whole family,” said Janet Young, a mother of two.

“Everything I have bought here has also lasted very well, and the designer clothes like Bitten are unique and different from other stores.”

Becky Byrd often stops by the Burbank location to buy her children low-price items such as jewelry, she said.

“It is really cheap. I can come here to buy stuff for my kids or things to send my niece and nephews,” Bryd said. “If it closed, I would really miss it.  .  .  It’s a great store to have during this bad economy.”

BH S&B; Holdings could acquire assets such as all of Steve and Barry’s merchandise and intellectual property rights its celebrity licensees and some store leases, according to the news release.

“They’ve got all kinds of apparel and it’s affordable,” said Jose Monroy, who works near the Burbank store.

“I’ve been collecting collegiate T-shirts since high school and no other retailer has the kind of selection they do.”