Steve and Barry's, the men's and women's clothing store chain, has filed for chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York.

The Port Washington, NY based clothing retailer, has 276 stores and sells high-fashion clothing for less than $20.

The clothings generally feature the celebrities, such as Sarah Jessica Parker, Amanda Bynes, Venus Williams, Stephon Marbury and Laird Hamilton. These collections are very popular among the teens and young adults.

According to Steve Shore and Barry Prevor, the variability of the credit markets and the general economic slide are the major factors affecting the company's performance. "High costs and fuel prices have increased our cost of goods and operating expenses and the profit margins are so low that the sales volume is not sufficient to support rent, licensing and other expenses," said Steve and Barry's founders and co-CEOs, Steve Shore and Barry Prevor.

The chain was started in 1985 with a mission to provide affordable, quality clothing to everyone, but its becoming increasingly difficult for them to operate normally under these circumstances. So the owners are looking forward to sell the company to pay off the debts and 172 corporate and filed staff positions have already been cut.

However, the 276 retail outlets will remain open and they will continue to honour the gift cards and store credits.