Thursday, 27 April, 2017

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

Struggling apparel retailer Bebe Stores to shut all stores Bebe is closing all its stores, the latest casualty in retail
Nellie Chapman | 21 April, 2017, 19:58

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. Bebe had 180 locations as of January 2, according to a separate SEC filing.

Bebe is among the retailers singled out this month by S&P Global Market Intelligence as one of the most likely to suffer a default or liquidity event.

The company's demise, which apparently comes without a bankruptcy filing, continues a wave of implosions among national retailers, as malls face declining foot traffic.

In February, bebe was already in the process of shrinking its store base. Rue21 also recently said it would close up to 400 stores. Retailers including Sears (S) and Macy's (M) are among the other large brick-and-mortar retailers also struggling with changing tastes in styles and shopping preferences. CNBC reports Bebe was trying to re-organize and considering a move to online-only sales. Representatives for Tiger Capital Group were not immediately available for comment.

The chain had previously said it was committed to closing 21 locations, which represented roughly 12 percent of its total outlets, CNBC reported. The company posted a net loss of $13 million during that period, down from $22.5 million a year earlier. This impairment charge will be recorded in the third and fourth quarters of this year, according to the SEC filing.