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 also plans to liquidate all merchandise and fixtures within the stores, it said in a regulatory filing on Friday. (bit.ly/2obl8s3)
Bloomberg reported last month that Bebe was planning to shut stores and seek a turnaround as an online brand to avoid filing for bankruptcy.
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 (AMZN.O) and fast-fashion retailers such as H&M (HMb.ST) and Zara.
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 did not say what its future plans were.
The Brisbane, California-based retailer, known for its form-fitting dresses and other apparel, had 180 stores at the end of 2016.
The company will also pay advisors 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)
Next In Business News
High-stakes vote on Wells Fargo board also tests proxy adviser ISS
BOSTON A high-stakes shareholder vote at Wells Fargo & Co next week will determine whether the bank has done enough to retain investor confidence after its phony-account scandal, and whether a leading proxy adviser wields enough clout to help oust most of its board.