Struggling apparel retailer Bebe Stores to shut all stores


Reuters

UPDATE 2-Struggling apparel retailer Bebe Stores to shut all stores


* To liquidate merchandise and store fixtures
    * Shares hit 14-month low of $3.02
    * Company does not specify future plans

 (Adds shares)
    April 21 (Reuters) - 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, which had 180 stores at the end of 2016, 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 hit a 14-month low of $3.02 in morning
trading.
    Bloomberg reported last month that Bebe was planning to shut
stores and seek a turnaround as an online brand to avoid filing
for bankruptcy. [nL3N1GZ5FZ]
    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 Brisbane, California-based retailer, known for its
form-fitting dresses and other apparel, did not say what its
future plans were.
    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)
 ((sruthi.ramakrishnan@thomsonreuters.com; Within U.S.+1 646 223
8780, outside U.S. +91 80 6749 1130; Reuters Messaging:
sruthi.ramakrishnan.thomsonreuters.com@reuters.net))

Keywords: BEBE STORES RESTRUCTURING/ (UPDATE 2)



This article appears in: World Markets , Stocks , Technology
Referenced Symbols: AMZN , BEBE


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