Steve & Barry’s has been granted permission to start liquidation sales in the wake of its second bankruptcy filing in five months. The U.S. retail chain, which was bought in August for $168 million by Bay Harbour Management and York Capital Management, has had poor sales in the midst of the economic crisis in the USA and it said in its filing last month that it couldn’t get additional financing at this time. Last week a judge allowed the chain to go ahead with liquidation sales in anticipation of the holiday season, though its creditors had not yet formed a committee. He made the exception because of the importance to retailers of the pre-Christmas shopping season. BH S&B Holdings, the name the two investment firms gave their affiliate, plans to have all 173 remaining stores liquidated in early 2009. More than 100 stores have already been closed.