The Chronic Consumer

I just read that Steve & Barry’s, the clothing store that sells almost everything on its shelves for less than $10, has filed for Chapter 11 bankruptcy protection. According to Wikipedia, Steve & Barry’s had been seeking about $30 million to fund operations since late June, but couldn’t raise that much capital.

The AP reports that Steve & Barry’s officials claim the sluggish economy has impacted their ability to borrow, so filing for Chapter 11 seemed like the next best move.

Although I’ve never actually shopped at Steve & Barry’s, I’ve heard some good things about the store. They actually sell (sold) quality products even though everything was so cheap. They’re a big hit in college towns, as you might expect, but their strategy of setting up shop in struggling malls (for the cheaper rent) seems to have come back to haunt them.

Hey guys, those malls are struggling for a reason, the reason being that few customers go there!

I could have sworn that just a couple of months ago, I read a different article about Steve & Barry’s that said the chain was going strong and were even looking to open more stores. That article, which I can’t find now (of course), stated that the bad economy was actually a plus for Steve & Barry’s, as more people would be looking for bargains.

Oh, the irony.

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