Thursday, July 10, 2008

Once Bitten, Now Bye

Steve & Barrys, the everything-for-under $20, has filed for bankruptcy. Defaulting on a $197 million asset-backed loan, the company was forced to petition for Chapter 11 in a Manhattan court on Wednesday.

The 23-year-old cheapo chain was home to Sarah Jessica Parker's Bitten line as well as lines by Venus Williams and Amanda Bynes.

"High costs of materials and fuel prices have increased our cost of goods and cost of operating. At the same time, our customers are not in a position to pay higher prices, impacting our operating margins," said founders and co-CEOs, Steve Shore and Barry Prevor in a statement.