On July 9, 2008, the company filed for Chapter 11 bankruptcy reorganization, citing a liquidity squeeze and the economic downturn, while in discussions with potential strategic and financial partners for a stronger Steve & Barry's to emerge. While initial results were promising, reorganization efforts ultimately failed, and successor parent company BH S&B Holdings announced the liquidation of its 173 remaining stores at the height of the credit crisis on November 27, 2008, which later converted the Chapter 11 reorganization into a Chapter 7 liquidation.