Tuesday, September 2, 2008
News / Chicagoland Steve & Barry's closes five stores
Posted by Whet Moser on 09.02.08 at 03:36 PM
Normally the financial trials of the sellers of Sarah Jessica Parker and Stephon Marbury-themed clothing wouldn't raise my interest, but Steve & Barry's incomparably risky business model is pretty interesting. How do you sell celebrity lines of clothing at thrift store prices? You get the landlord to pay you:
"People close to the company's finances say most of the retailer's earnings came in the form of one-time payments from landlords, often for $2 million to $3 million, each time it opened a Steve & Barry's. There are currently about 275 stores, located in 40 states. Profit from ongoing operations was scant, if any. The new stores usually opened strongly, these people said, but could not keep pace after a few quarters."
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