Steve & Barry's set to close 2 E.L. area stores

Two Lansing-area Steve & Barry’s are closing their doors as part of the company’s plans to run a smaller base of stores, spokeswoman Rachel Brenner said.

The East Lansing location at 515 E. Grand River Ave., suite H; and the Meridian Mall location in Okemos are closing. The Lansing Mall location in Delta Township will remain open.

The two closing locations are offering a “Store Closing Sale” that will be available for a limited time, although an exact closing date hasn’t been set, Brenner said.

“We deeply regret the impact this store closing will have on our associates, our customers and the community,” Howard Schacter, a company spokesperson, said in an e-mail.

Steve & Barry’s, known for its affordable clothing and wide selection of college apparel, filed for bankruptcy in July and was purchased out of bankruptcy in August by BH S&B Holdings, a newly formed affiliate of investment firms Bay Harbour Management and York Capital Management.

BH S&B Holdings plans to cut the number of Steve & Barry’s stores nationwide from 276 to about 170. Statewide, 15 of the company’s 21 stores will remain in operation.

“We intend to run a smaller base of Steve & Barry’s stores, better positioning the company to reach its profitability goals,” Schacter said.

Terry Livermore, manager of MSU’s licensing programs, said the closures should have a minimal effect on university licensing revenues.

“Steve & Barry’s was a large retailer for MSU products, and obviously their revenues to our programs will probably drop off for a period while they go through restructuring,” Livermore said. “But there are a number of outlets throughout the area for our products, and it’s not going to prevent people from purchasing MSU products.”

Livermore said the university brought in about $1.5 million in total licensing revenue last year.

Howard Ballein, owner of Student Book Store, 421 E. Grand River Ave., which also carries MSU apparel, said the business effect of Steve & Barry’s closure is uncertain.

“It’s pretty hard to predict, but I’d lean toward it could help our business,” Ballein said. “On the other hand, they carry different products and could be drawing people to the area.”

Students said they’re surprised to see the affordable clothing store leave its locations.

“I’m shocked to hear the news; I didn’t expect to see them close,” said Joseph Ahonen, a criminal justice graduate student. “They have cheap clothing, decent quality and MSU apparel, which is always nice to see.”

Ethan Olds, a finance freshman, said he’s also sad to see the stores close.

“They’re cheap and it’s a convenience factor because they have a lot of everything,” Olds said.

Published on Wednesday, September 3, 2008