Everything must go at Steve and Barry’s.

The clothing store in the Santa Maria Town Center is selling everything for $5.98 or less until it closes its doors Wednesday.

Since the company filed for protection under Chapter 11 of the U.S. Bankruptcy Code in early July and was then acquired by a group of investment firms, the company has created a new business plan.

Instead of operating 276 Steve and Barry’s stores in 39 states, it will close 103 of those stores, reducing expenses and improving its chances of meeting profit goals, according to a prepared statement from Andy Todd, president of Steve and Barry’s.

The local Steve and Barry’s University Sportswear is a 26,920-square-foot store in the southwest corner of the mall at East Main Street and Broadway.

When the store’s arrival at the Town Center was announced in September 2006, the then-managing member of the mall ownership, Jerald Schutte, said that he had been asked by people for an Old Navy store but had told them that Steve and Barry’s would be better.

The company’s popularity stemmed from the fact that none of its products cost more than $10.98 and it sold apparel lines by celebrities such as actresses Sarah Jessica Parker and Amanda Bynes, NBA star Stephon Marbury and others. Tennis star Venus Williams, for example, won Wimbledon this year dressed completely in Steve and Barry’s apparel.

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Early in the bankruptcy process, the company announced that it was considering a plan to sell all or some of its assets to repay outstanding debt and would begin eliminating positions.

“We deeply regret the impact this store closing will have on our associates, our customers and the Santa Maria community,” said company spokesperson Howard Schacter.

However, the company insists that a lack of sales was not what led it into bankruptcy. From January to May 2008, total apparel sales increased 70 percent compared to the same period in 2007, according to the company.

Steve and Barry’s officials blamed a cash crunch as a result of tighter credit markets and a sluggish economy, which derailed its plans to open stores and sell off inventory.

Local representatives of Santa Maria Town Center management would not comment on the number of tenants in the mall or how many vacant storefronts there would be after the Steve and Barry’s closing.

Representatives from Architectural Ventures Real Estate Development Co., which owns the Town Center, did not return numerous calls asking for comment.

Sam Womack can be reached at 739-2218 or swomack@santamariatimes.com.

September 20, 2008