UPDATE: Steve & Barry's have officially went under and has filed a voluntary Chapter 11 petition in Manhattan bankruptcy court.

Tear. Mega retail chain Steve and Barry's is headed toward major financial downturn. The 28-year-old clothing chain who recently gained popularity for carrying celebrity sportswear lines — most notably, Bitten by Sarah Jessica Parker — at rock-bottom prices has filed for bankruptcy protection.

Steve and Barry's is set to shut down a large number of its 270 stores and will most likely be forced to liquidate all assets. So how does SJP feel about this failed venture? “We are surprised and disappointed that this situation has developed. We are surprised because our understanding, based on the accounting statements we see, was that sales have been very, very strong” said Sarah Jessica Parker's lawyer, Ira Schreck.

Let's not lose hope too soon. The company is looking for an acquisition; Sears and Kmart have showed interest, with the possibility of continuing a partnership with its licensed celebrity lines. Would you miss Steve and Barry's?