Short Pump-Based S&K Menswear Files For Bankruptcy
February 9, 2009 - 10:41 am
By Aaron Kremer
Short Pump-based men’s clothier S&K Famous Brands, Inc. has filed for Chapter 11 Bankruptcy Protection in an effort to get out of leases and trim costs. The company lists assets of $41,440,100 and debts of $35,499,000 (not including operating leases). There will be a hearing at 2:00 today in Richmond.
The company listed four reasons in its filing: “erosion of vendor confidence, inability to obtain feasible lease settlements with lessors at certain company stores, decreased liquidity and decreased discretionary consumer spending.”
After earning $2.78 million in 2007, S&K lost $3.98 million in 2008.
S&K will try to use the filing to get out of leases of under-performing stores, including one at Virginia Center Commons. It was also try to get out of contracts with local marketing firms, including $1.32 million with the advertising firm Right Minds and $402,000 with the media buying firm Kinton & Stallings.
In July of 2008, the company hired turn-around firm Alvarez and Marshal. At that time, S&K had 219 stores. They now have 136. According to the filing, the S&K can save $3.8 million per year if the leases are voided. S&K had already put its Short Pump headquarters up for sale.
Employees will continue to get paid as normal, according to the filing. The company had 716 full-time employees and 699 part-time employees at the end of January. Fifty-one of those are at the headquarters in Glen Allen.
S&K was started in Richmond in 1967 by Abe Kaminsky and Hip Siegel. They intended to offer a quality product with excellent service at a reasonable price, according to the filing. The company had 100 stores in 1990 and 200 stores in 1997. It’s unclear exactly when the business model started failing. But in 2005, the company was delisted from NASDAQ.
Stuart Siegel, the company’s chairman and son of the founder Hip Siegel, owns 15% of the stock.
No wonder. Every time I’ve been in there, I get the pompous fruity sales guy type who can only stare at you in disbelief if you’re there to spend less than $400 on a suit. S&K has always seemed to do a good job of convincing me NOT to spend my money in their stores.
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S&K deserves to go bankrupt! They treat their employees like crap. In particular, one very obese, greasy, and racist District Manager, who shall remain nameless.
They are blaming the economic down turn as to why they needed to file Chapter 11. S&K had many problems waaay before the U.S. economic crisis. They will not survive if they have the same leadership and subpar marketing team. A marketing person did not even know who their customers were. C’mon, you been in business for nearly 40 years and don’t know who your customers are? No wonder they can’t sell a suit and are bleeding money…
[...] filed for Chapter 11 bankruptcy back in February, listing assets at the time of $41,440,100 and debts of $35,499,000. They used the [...]
The time has come for S&K to simply – go away. I worked for this company for seven years and was even a store manager for them as well. I enjoyed my time with the company when it was being run by Don Colbert; he was a great leader and man. However, once he died S&K died with him. Speaking from the inside S&K likes to make you believe it doesn’t get any better then their company. I have seen them let go of so many good people (I wish I could name several people but it could be determined who I am if I name names) that made S&K what it was. The problem with S&K is they want the cream of the crop but want to pay their sales managers $7.73 an hour! How is a father going to pay the house payment on that – he can’t! So they sell the commission plan to him/her – 10% of whatever you sell. You sell $5,000 a week you make $500.00. The goal for sales managers is anywhere between $3,400 to $4,500 that’s what they want you to sell. Thus repeats the cycle of you having to train someone else and sell them on the fact their wage is no their hands. Sales Managers have to produce 40% of the stores sales each week – however it is the GM who is making the sales in most for the stores. Their is a lot of things wrong with S&K – this is one thing I see the most problem with for the company today.
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Who buys suits anymore? This decade has seen a sharp decline in mens suits as the US becomes a broke, uncivilized, 3rd world country. I worked for S&K Menswear in the late ’90’s, when suits and professionalism were still part of the game. Besides, the only people wearing suits today are the ivory tower hoodlums in Dubai and the scum of the earth bankers at Goldman Sachs.
[...] company filed for Chapter 11 bankruptcy back in February, listing assets at the time of $41,440,100 and debts of $35,499,000. They used the [...]
[...] S&K filed for Chapter 11 bankruptcy back in February, listing assets at the time of $41,440,100 and debts of $35,499,000. They used the filing to try and get out of leases of under-performing stores in their portfolio, including one at Virginia Center Commons. The company also intended to break contracts with local marketing firms, including $1.32 million with the advertising firm Right Minds and $402,000 with the media buying firm Kinton & Stallings. [...]
wow, it seems there must be some bitter employees. If I had only sold $5000 a week as a sales manager I would not want the title. Clerk would be more fitting. As a SM whom promoted to GM in 6 months, I experienced great leadership from one Derek Jones. My team and I were compensated well. We are in Sevierville, TN and were store of the year. The problem was the attitude of the majority was weak. It is a shame we could not find our target market but still were a viable mens retailer. Its a shame. Hope my fellow teammates have all found new rewarding careers as I have. GO AARONS SALES AND LEASE!!!