Bebe is closing all its stores, the latest casualty in retail

Owen Stevens
April 21, 2017

Struggling apparel retailer Bebe Stores Inc BEBE.O said on Friday it would close all its stores by the end of May, barely a month after announcing it was exploring strategic alternatives following four years of losses.

The company said in a Securities and Exchange Commission filing that it had signed a deal with liquidator Tiger Capital Group to sell all of its remaining inventory.

The specialty apparel retailer operates 134 retail stores, 34 outlet stores and its website, according to a March press release. In the most recent quarter, revenue was $101.9 million, a drop of 16.8% from $122.4 million reported in the same period the year before.

The retailer expects to take an impairment charge of approximately $20 million, net of deferred rent and other credits, as a result of closing the remainder of its stores. Through licensing agreements, in addition to locations in the U.S., Puerto Rico and Canada, the company also distributes and sells bebe branded merchandise in some 75 stores in more than 21 countries.

Bebe noted that it might incur a loss in connection with this sale of its merchandise and inventory, but is unable to now determine the loss.

Bebe tells the SEC they've hired consultants to assist them with selling off all of the merchandise in the company's stores, along with furnishings, fixtures and equipment.

Bebe was founded in 1976. The store used to have a location at the Riverchase Galleria in Hoover which closed years ago.

Bebe has not commented on the closure and there was no mention of it on the company's website Friday morning.

Other reports by VgToday

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