Steve & Barry's

Steve & Barry's

File:Steve & Barry's Clothing Final Logo.png
Company type	Private equity
Industry	Retail
Founded	1985 (1985) (originally Steve & Barry's University Sportswear)
Founders	Steven Shore Barry Prevor
Defunct	Template:End date and age
Fate	Bankruptcy and Liquidation
Headquarters	Port Washington, New York, U.S.
Key people	Steven Shore (co-founder) Barry Prevor (co-founder) Hal Kahn (CEO) Gary Sugarman (COO)
Products	Clothing
Revenue	$1.1 billion (2008)

Steve & Barry's was a U.S.-based retail chain specializing in casual clothing, shoes, and accessories. Its headquarters were located in Port Washington, New York, and prior to ceasing operations in 2008–2009, it managed 276 outlets across 39 states.

Initially launched as Steve & Barry's University Sportswear, the brand concentrated on collegiate-themed apparel and private-label casual wear. In 2007, it underwent rebranding after obtaining celebrity licensing agreements to expand its market reach with exclusive branded collections.

History

Established in 1985 by Steven Shore and Barry Prevor at the University of Pennsylvania, Steve & Barry's built its reputation by providing affordable college-branded merchandise. This approach enabled growth into prominent university markets including Michigan State University, University of Michigan, and Indiana University.

The company's first major mall-based location opened in 1998 at Great Lakes Crossing in Michigan, marking a shift toward a broader product assortment that included business casual attire, denim, activewear, outerwear, footwear, and T-shirts. Licensing partnerships extended to well-known names such as Hershey's, Marvel Comics, Ford, WWE, My Little Pony, Monopoly, and General Mills cereals.

This extensive product diversification supported an average annual growth rate of approximately 50% over twenty years. By 2005, Steve & Barry’s earned recognition from the International Council of Shopping Centers as a “Hot Retailer of the Year,” alongside companies like Apple and Williams-Sonoma. In 2007, it was honored as Marketer of the Year by Brandweek. The founders were awarded the Ernst & Young Entrepreneur of the Year Award in 2006 for their strategic vision.

Between 2005 and 2007, during its most rapid expansion phase, Steve & Barry’s increased its retail footprint by more than 14 million square feet—surpassing specialty apparel rivals such as Gap Inc., Abercrombie & Fitch, and American Eagle Outfitters—and ranking among the top ten retail space developers nationwide.

In 2006, private equity firm TA Associates acquired a minority stake. Subsequently, a group led by Bay Harbour Management purchased the company for $168 million. Early in 2008, GE Commercial Finance extended a $197 million asset-based credit facility to fund operating capital requirements.

Confronted with cash flow difficulties amid an economic downturn, Steve & Barry’s filed for Chapter 11 bankruptcy protection on July 9, 2008. Despite attempts to restructure and ongoing investor discussions, the company announced the closure and liquidation of its remaining 173 stores by November 2008. The bankruptcy proceedings transitioned to Chapter 7 liquidation during the financial crisis.

Celebrity lines

In 2006, the company collaborated with NBA point guard Stephon Marbury to create the Starbury Collection, a 50-piece assortment of cost-effective athletic apparel and footwear. The standout item, the Starbury One basketball shoe, was priced at just $14.98, delivering an authentic NBA-quality sneaker at an unprecedented price. This approach highlighted a commitment to social responsibility, as thousands of pairs were donated to public school athletes, sparking widespread media attention and leading to rapid sellouts in stores. Marbury actively supported the brand by distributing shoes to young sports players and wearing them during games. The following year, 2007, NBA Defensive Player of the Year Ben Wallace became a spokesperson for Starbury, introducing his own Big Ben sneaker line for the 2007-08 season.

In June 2007, actress Sarah Jessica Parker unveiled BITTEN, a women's fashion collection focused on merging style with affordability, inspired by her personal experiences with hand-me-down clothing. The line quickly grew to include over 400 items and achieved both commercial success and critical acclaim. Parker also partnered on exclusive designs for Steve & Barry's through her involvement with Project Runway.

August 2007 saw former Nickelodeon actress Amanda Bynes launch her women's apparel brand, Dear, aimed at a youthful audience similar to BITTEN's demographic.

Tennis champion Venus Williams promoted her EleVen clothing and sneaker range via the company, while professional golfer Bubba Watson introduced "Bubba Golf," an affordable golf apparel collection.

In May 2008, renowned big-wave surfer Laird Hamilton debuted the "Wonderwall" line featuring men's surf and skate-inspired clothing. Hamilton's collaboration underscored a shared mission to provide accessible fashion options for teenagers from modest economic backgrounds.

Singer Ciara, affiliated at the time with Jay-Z's Rocawear label, revealed plans in 2008 to launch her own fashion collection in partnership with Steve & Barry's.

These celebrity-endorsed product lines played a pivotal role in the company’s strategy, harnessing star influence to broaden market reach and increase brand recognition across varied consumer segments.

Business model

Steve & Barry's adopted an "Extreme Value Retailing" philosophy, setting prices predominantly between $5.98 and $9.98, with select celebrity-backed items priced up to $19.98. Founders Steve Shore and Barry Prevor prioritized low pricing by foregoing traditional advertising channels, instead relying on word-of-mouth and viral marketing efforts. The business model emphasized operational efficiency, high sales volumes, and modest per-item profit margins. Their innovative sourcing approach—buying from multiple manufacturers throughout the year—helped secure competitive unit costs by encouraging supplier bidding rather than committing to fixed contracts.

The retailer’s combination of low prices and exclusive product lines drew considerable customer traffic, which often benefited smaller neighboring businesses. Steve & Barry's strategically targeted economically disadvantaged areas that had been overlooked by other retailers. Store footprints varied from 25,000 to 150,000 square feet, allowing the company to serve as anchor tenants in malls and negotiate advantageous leases and incentives.

Financial problems and bankruptcy plan

By June 2008, Steve & Barry's had accumulated $135.9 million in debt owed to a lending division of General Electric Commercial and subsequently filed for Chapter 11 bankruptcy protection on July 9, 2008. Founders Shore and Prevor attributed the filing to cash flow challenges amid difficult market conditions in the retail sector. Throughout the restructuring process, the company continued operating its stores, upholding existing return policies and honoring gift card redemptions.

In an effort to manage its financial obligations, Steve & Barry's pursued the sale of assets and entered discussions with Sears Holdings Corporation. Sears considered either acquiring Steve & Barry's brands or incorporating their outlets into existing Sears or Kmart locations.

On August 21, 2008, BH S&B Holdings LLC, connected to Bay Harbour Management L.C., reached an agreement to purchase selected assets. These included merchandise inventory, store leases, intellectual property rights, celebrity endorsement agreements, the corporate headquarters in Port Washington, New York, the distribution facility in Columbus, Ohio, as well as international offices. Bay Harbour intended to keep approximately 150 out of the chain’s 276 stores operational and appointed Hal Kahn—previously CEO of Macy’s East—as the new chief executive officer.

Bankruptcy documents revealed that in 2008 Steve & Barry's generated $1.1 billion in annual revenue and held assets valued at $693 million. Sales had increased by roughly 70% compared to the previous year, with average sales per store rising by 25%. Despite these positive indicators, deteriorating economic conditions negatively impacted retail sales and led to an unsuccessful reorganization effort. By November 20, 2008, following multiple store closures, Steve & Barry's announced plans to liquidate its remaining 176 locations by early 2009.

In March 2010, legal proceedings involving a sports marketing firm disclosed that athlete Stephon Marbury owed more than $200,000 in commissions related to a sportswear collection sold through Steve & Barry's outlets.