NEW YORK — A U.S. Bankruptcy Court judge on Friday approved a $163 million acquisition of discount clothing chain Steve &Barry’s.
BHY Holdings LLC, an affiliate of investment firms Bay Harbour Management and York Capital Management, said earlier this week it had won a bid to buy Steve &Barry’s for $168 million. A company representative was not immediately available to discuss the court’s decision or say why the purchase price had changed.
The deal went before U.S. Bankruptcy Court Judge Allan Gropper in New York on Thursday and Friday. The acquisition is expected to be completed Monday.
Steve &Barry’s LLC, based in Port Washington, N.Y., filed for Chapter 11 bankruptcy protection in July after ambitious growth plans were hurt by slower spending by consumers and the credit squeeze. The company has an outlet in Everett Mall that is expected to remain open under the new ownership.
Under the terms of the deal, the new owners will acquire nearly all the assets of Steve &Barry’s and keep most of its 276 stores open. The new ownership said it will decide within a week which stores will close based on their profitability.
Bay Harbour has experience in purchasing distressed companies and turning them around. The firm bought retailer Barneys New York out of bankruptcy before selling it to Jones Apparel Group Inc. Its holdings include the former Aladdin Casino, which is now operating on the Las Vegas strip as the Planet Hollywood Resort and Casino following a rebranding.
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