It's official. Steve & Barry's has filed for Chapter 11 bankruptcy protection and now the question is what the discount clothing retailer needs to do to pay off some of its debt.
Sears Holdings has figured prominently in reports about how Steve & Barry's may find its way out of its current predicament.
George Whalin, president and chief executive of Retail Management Consultants and a member of the RetailWire BrainTrust, told Crain's, "What Sears may end up doing is buying some brands."
Mr. Whalin was not positive about a Sears Holdings/Steve & Barry's deal because, "this is two really poor companies trying to get together and we've already seen that's not a good concept in any way, shape or form."
Howard Davidowitz, chairman of Davidowitz & Associates, took a much more positive view.
"Would the Kmart (and Sears) customers go crazy for this?" he said. "They might because customers are already pouring out of secondary locations to buy this fashion merchandise (that's under $10). That's why I say this is a potentially big idea."
Discussion Questions: What form do you think a deal between Sears Holdings and Steve & Barry's might take? Do you side with George Whalin or Howard Davidowitz on the wisdom (or lack thereof) of a deal between the two businesses?