Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nasdaq  >  Bebe stores, inc.    BEBE

SummaryQuotesChartsNewsCalendarCompanyFinancials 
News SummaryMost relevantAll newsSector newsTweets 

Struggling apparel retailer Bebe to shut all stores

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/21/2017 | 07:15pm CEST
A Bebe store logo is pictured on a building along the Lincoln Road Mall in Miami Beach

Struggling apparel retailer Bebe Stores Inc (>> bebe stores, inc.) 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.

Struggling apparel retailer Bebe Stores Inc (>> bebe stores, inc.) 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, which had 180 stores at the end of 2016, did not say what its future plans were.

Bebe also plans to liquidate all merchandise and fixtures within the stores, it said in a regulatory filing. (http://bit.ly/2obl8s3)

Shares of the company, known for its form-fitting dresses and other apparel, hit a 14-month low of $3.02 in morning trading but were later up about 7 percent.

Bebe could consider filing for bankruptcy to settle favorably with landlords of their stores, Joel Levitin, a partner in law firm Cahill Gordon & Reindel's bankruptcy & restructuring practice, said.

All of the company's stores are leased, according to its annual report.

"If the landlords don't deal with them at all or if they are not able to come to a satisfactory solution, then they may need bankruptcy to reduce the amount of damage claims," Levitin said.

Bloomberg reported last month that Bebe was planning to shut stores and seek a turnaround as an online brand to avoid filing for bankruptcy.

"Because there's the threat of bankruptcy, there should be some ability to negotiate with landlords," Levitin added.

A number of apparel retailers have gone bankrupt in the last couple of years, including Aeropostale and The Limited, due to lackluster demand as they battle stiff competition from Amazon.com Inc (>> Amazon.com, Inc.) and fast-fashion retailers such as H&M (>> H & M Hennes & Mauritz AB) and Zara.

More retailers are expected to file for bankruptcy this year, according to industry experts.

"We are witnessing a paradigm shift from bricks and mortar stores to online presences. Not everyone will survive," Anthony Michael Sabino, co-founder of law firm Sabino & Sabino P.C. said.

Bebe expects to recognize an impairment charge of about $20 million from the store closures, which will be recorded in the third and fourth quarters.

The company will also pay advisers B. Riley & Co and Tiger Capital Group LLC $550,000 and 15 percent of the gross proceeds from the sale of store fixtures.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Shounak Dasgupta)

By Sruthi Ramakrishnan

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BEBE STORES, INC.
06/09 BEBE STORES, INC. : Featured Company News - Women's Fashion Brand Bebe Stores Ma..
06/08 BEBE STORES : Announces completion of reorganization
06/07 BEBE STORES, INC. : Entry into a Material Definitive Agreement, Termination of a..
06/07 BEBE STORES, INC. : Announces Completion of Reorganization
05/19 INSIDER TRADING ACTIVITY BEBE STORES : BEBE) – Major Shareholder Bought 98..
05/19 BEBE STORES : How Retail Landlords Could Benefit from Bebe Stores’ Closing..
05/18 INSIDER TRADING ACTIVITY BEBE STORES : BEBE) – Major Shareholder Bought 83..
05/16 BEBE STORES : MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RE..
05/12 INSIDER TRADING ACTIVITY BEBE STORES : BEBE) – Major Shareholder Bought 5,..
05/11 INSIDER TRADING ACTIVITY BEBE STORES : BEBE) – Major Shareholder Bought 1,..
More news
Sector news : Women's Apparel Retailers
06/20 CK Hutchison skirts report of Li Ka-shing retirement, tycoon in "good health"
06/16DJToday's Top Supply Chain and Logistics News From WSJ
06/15 HENNES & MAURITZ : H&M sales miss forecast after rough start to May
06/14DJINDITEX : How Zara Is Defying a Broad Retail Slump
06/14DJINDITEX : Zara Parent Inditex Beats Rivals With 18% First-Quarter Profit Rise --..
More sector news : Women's Apparel Retailers
News from SeekingAlpha
06/07 Midday Gainers / Losers
06/07 Reorganization at bebe stores ramps up
06/05 BEBE STORES : Clear Value Masked By Messy Restructuring
05/23 Midday Gainers / Losers
05/22 INSIDERINSIGHTS.COM DAILY ROUND UP 5 : Rev, frgi, bebe, mcc, brkr, aat
Advertisement
Chart BEBE STORES, INC.
Duration : Period :
bebe stores, inc. Technical Analysis Chart | BEBE | US0755712082 | 4-Traders
Full-screen chart
Technical analysis trends BEBE STORES, INC.
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Managers
NameTitle
Manny Mashouf Non-Executive Chairman & Chief Executive Officer
Walter J. Parks President, Chief Operating & Financial Officer
Hamid Mashouf Chief Information & Technology Officer
Corrado Federico Independent Director
Brett C. Brewer Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BEBE STORES, INC.22.40%50
SHIMAMURA CO., LTD.-6.32%4 649
NINGBO PEACEBIRD FASHI..--.--%1 861
CHICO'S FAS, INC.-38.43%1 147
SHENZHEN ELLASSAY FASH..-9.47%1 103
ARITZIA INC-13.71%604
More Results