Steve & Barry's to close Thursday

Discount clothing store Steve & Barry's is scheduled to close its Cape Girardeau location Thursday, a store employee confirmed Tuesday morning.

The news comes nearly three months after company officials announced the Cape Girardeau store in West Park Mall would be one of about 100 locations to soon close its doors. Store management declined to comment on the situation.

When phone calls were placed to the Steve & Barry's public relations office, a recorded message stated it was no longer a working number. E-mails to company representatives seeking comments were not returned.

However, Susan Godorov, vice president of marketing for Centro Properties Group, which owns West Park Mall, said her company is "actively pursuing numerous options at this store."

The fate of the store has been in jeopardy since Steve & Barry's filed for Chapter 11 bankruptcy protection July 9. Bay Harbour Management purchased the company Aug. 26 for $163 million, with hopes of restoring the troubled corporation. At the time, the company announced roughly 100 of its 276 Steve & Barry's stores in 39 states would close, including the Cape Girardeau location.

Despite Bay Harbour's history of turning around such troubled or bankrupt corporations as the former Aladdin Casino in Las Vegas and Barneys New York department store chain based in New York City, the company was unsuccessful in saving Steve & Barry's.

The Wall Street Journal reported Tuesday the company has hired a liquidation firm to close its remaining stores. Its 5,000 employees will be let go, according to the Journal.

Since its closure was announced, the Cape Girardeau store has advertised specials on its products. Grand Rapids, Mich.-based JG Resources is handling fixture liquidation sales at 66 locations, including Cape Girardeau, Hannibal and St. Ann in Missouri.

JG Resources chief executive officer Jim Grimwade believes Steve & Barry's closure will have a positive effect on the economy.

"Reselling these fixtures and equipment to other retailers and business owners who are expanding or remodeling gives me a positive outlook," Grimwade said. "Of course, we are truly sorry about these store closings, but we know that selling this equipment to other business owners at a fraction of the cost of new will help fuel the local economy's growth. It could also help retailers create new jobs by cutting costs from their bottom line."

The 80,000-square-foot Cape Girardeau store opened Oct. 14, 2005, taking the space of ShopKo, which left the mall in 2001. When it opened, Steve & Barry's had 67 stores in 26 states, with plans to open another 70 locations by late December 2005.

In October, McAlister's Select, Cinnabon, Carvel and Dollar Plus Boutique all closed their doors at West Park Mall. However, other stores, such as Justice Just For Girls, recently established locations in the mall.

"We are in uncertain economic times," said Cape Girardeau Chamber of Commerce president and chief executive officer John Mehner. "While several businesses are struggling, other sectors are doing very well. We will continue to work with area businesses and new business possibilities so all that want to work can find employment."

bblackwell@semissourian.com

388-3628

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