DANVERS — The fate of one of the newest stores in the Liberty Tree Mall is still up in the air with the announcement the cash-strapped Steve & Barry's LLC has found a buyer in the form of a turnaround specialist.
When asked if the announcement would mean the Danvers store would be spared or closed, Steve & Barry's spokeswoman Rachel Brenner said last week, "It's too soon to say."
According to the Turnaround Management Association, a turnaround specialist typically acts as an interim manager or consultant for a company in financial trouble. In some cases, the specialist may replace a company's chief executive and temporarily take over the decision-making processes to lead it toward stability.
Steve & Barry's opened its 24,000-square-foot store in the Liberty Tree Mall on Independence Way in mid-June, its first Boston-area location.
Just weeks later, the clothing retailer with its popular Sarah Jessica Parker's "Bitten" clothing line and NBA's Stephon Marbury's "Starbury" sneakers filed for Chapter 11 bankruptcy protection, citing a slow economy.
A manager for the Danvers store at the time said the store employs 40 to 50 workers. The Port Washington, N.Y.-based retailer operates 276 stores nationwide.
Last Tuesday, the retailer said in a statement the U.S. Bankruptcy Court for Southern District of New York has approved a "stalking horse" asset purchase agreement with BH S&B Holding LLC, a newly formed affiliate of turnaround specialists Bay Harbour Management. The stalking horse becomes the first bidder in a bankruptcy auction.
Bay Harbour's affiliate would buy Steve & Barry's for $163 million, and, subject to lease negotiations prior to an Aug. 18 auction, it intends to run the stores "with current staff and key facilities."
BH S&B would get certain store leases, merchandise, and rights to the celebrity and brand licenses.
"Further due diligence will determine which Steve & Barry's renegotiated store leases BH S&B Holdings would acquire should the Asset Purchase Agreement be approved by the Court," a statement from the company said.
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