Steve and Barry's bankruptcy won't affect Terre Haute store

TERRE HAUTE - Discount clothing retailer Steve & Barry's will keep its doors open in Terre Haute despite closing more than 100 stores nationwide.

Steve and Barry's, which opened a 25,000-square-foot store in Honey Creek Mall last summer, filed for Chapter 11 bankruptcy protection earlier this year. The company plans to reduce its number of stores nationwide from 276 to 170.

"We're really happy that they are staying at Honey Creek Mall," said Monica Schiller, marketing director for the mall. "They have been a great addition to our tenant mix," she said.

Two of Steve & Barry's stores in Indiana - in Marion and Kokomo - are closing. Six others, including stores in Terre Haute, Bloomington, Indianapolis, South Bend and Fort Wayne, are remaining open, according to a company spokesman.

A company official would not say how many employees work at Steve & Barry's in the Honey Creek Mall or if any jobs there would be cut. The official also would not comment on how business at the Terre Haute store has been, but Schiller said the company has targeted its apparel selection well to meet the needs of Wabash Valley shoppers.

According to a company statement issued in July, Steve & Barry's plans to reduce staff, consolidate offices and take other cost-cutting actions. At that time, the company announced it would be cutting 172 corporate and field staff positions.

Last month, a U.S. court permitted a newly formed affiliate of investment firms Bay Harbour Management and York Capital Management to buy substantially all Steve & Barry's assets out of bankruptcy for $163 million, according to information provided by Steve & Barry's.