Steve & Barry’s faces closure

U.S. casual clothing retailer Steve & Barry’s is set to announce it will go out of business, the Wall Street Journal reported, citing two people familiar with the situation.

Bay Harbour Management, a private equity firm based in New York and which had previously acquired 175 of the company’s stores, has hired a liquidation firm to handle the chain’s going-out-of-business sale, the paper said, adding that about 5,000 employees will be let go.

Harold Kahn, who was hired in mid-October to run the revamped chain, is no longer with Steve & Barry’s, the paper said, citing a person familiar with the situation.

New York-based hedge fund York Capital Management, which invested equity alongside Bay Harbour Management, also stands to lose its investment, according to the paper.

Cerberus Capital Management, whose Ableco lending unit provided a loan to finance the deal, expects to be paid back in full, the paper said, citing people familiar with the deal.

A Steve & Barry’s spokesman did not immediately reply to an email seeking comment from Reuters. —Sakthi Prasad, Reuters