One of the largest apparel chains in the US, Steve & Barry’s LLC is reported to have finalized its purchase by a unit of the investment firm, Bay Harbor Management. The latter plans to buy the retail chain for $163 million, most of which would go repaying around 100,000 creditors. Steve & Barry’s has assets worth $500 million to $1 billion but has accumulated debts of similar proportions.

The Bay Harbor Management unit plans to keep the apparel chain as a going concern and intends to buy leases of certain Steve & Barry’s stores from its 276 retail outlets. The new owner would acquire all intellectual property rights of the chain including celebrity and brand licenses besides acquiring all the merchandize from the stores it plans to purchase.

Steve & Barry’s is famous for its mid-range apparel and has lines designed by several celebrities like actress Sarah Jessica-Parker, tennis player Venus Williams as well as basketball player Stephon Marbury. On July 9, this year, the privately-owned chain with 63 of its affiliates sought the protection of Bankruptcy court at Manhattan. The company cited high costs, restricted consumer spending as well as unfavorable credit markets as reasons for its failure to repay debts.

-Kalyani Mookherji