Steve & Barry's hearing on cash collateral, sales procedures adjourned until Friday

By Rebecca Melvin

New York, July 31 - Steve & Barry's LLC's hearing for final approval of cash collateral use and amendments to its sales procedures and auction rules was scheduled for Friday at the U.S. Bankruptcy Court for the Southern District of New York, after being adjourned Thursday, according to a attorney.

The company obtained interim court approval to use cash collateral under an agreement with its secured lenders on July 14.

The apparel retailer's motions are both contested, with objections coming from landlords and unsecured creditors.

Steve & Barry's is seeking a sale or full chain liquidation, and since filing for bankruptcy on July 9, it adjourned another hearing, saying it wanted to give potential bidders more time to formalize offers.

Steve & Barry's, with 275 stores in 40 states, said it entered Chapter 11 with no cash and no financing, and that it hoped someone would buy the business as a going concern although it will accept bids from liquidators.

Papers along with the petition said assets are $693 million while debt is $638 million

Steve & Barry's is a Port Washington, N.Y.-based national apparel and accessories retailer. Its Chapter 11 case number is 08-12579.

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