dglobalnews.com Bebe to close all 175 stores
Published: Fri, April 21, 2017
Markets | By Armando Jensen

Bebe to close all 175 stores

Bebe to close all 175 stores

The Company now anticipates that it will close all the Stores by the end of May 2017.

Women's clothing retailer Bebe Stores said Friday that it would close all of its locations after a string of losses, becoming the latest casualty in the retail sector as the fallout from online competition and shifting fashion preferences spreads. As of the first quarter, the company operated 137 retail locations and 35 outlet stores in the U.S., Puerto Rico, and Canada.

The Company now anticipates that it will close all of the Stores by the end of May 2017. The filing didn't specify whether it will continue as an online-only retailer.

Bebe has a total of 168 retail and outlet stores. In March, Bebe management and its board said they would explore "strategic alternatives" and hired financial advisor B. Riley and an unnamed real estate advisor to assist in a restructuring.

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Bebe's stock initially fell more than 4 percent Friday morning in premarket trade on this news, after closing at $3.76 per share on Thursday. Net sales at Bebe fell 13.5 percent in the first six months of its current fiscal year, which ended December 31. The retailer did say it expected to incur an impairment charge of $20 million in its third and fourth financial quarters, attributed to deferred rent obligations.

It's been a rough year for retailers.

Bebe joins a number of struggling companies like Macy's, JcPenney and Sears that are closing hundreds of stores and cutting thousands of jobs.

Luxury retailer Neiman Marcus said earlier this month that it might sell itself, after ditching its plans for an IPO in January amid sorry sales.

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