Low-Priced Clothing Seller Files for Bankruptcy

July 9, 2008 11:57:51 AM PDT
Retailer Steve & Barry's has filed for bankruptcy. The seller of low-priced clothing is the latest retailer to fall victim to the slowdown in consumer spending. Steve and Barry's says it is considering a plan to sell assets to pay debt.

The chain based in Port Washington, New York operates 276 locations in 39 states.

Company officials cite a cash crunch linked to tight credit markets and general sluggish economic conditions. That hurt plans to open stores and its ability to borrow money. The chain has sold clothing under licensing agreements with celebrities including Sarah Jessica Parker.