- Angela Gonzalez-Rodriguez |
Bebe Stores Inc. is planning to close down entirely its physical stores network and become an online-centric player.
Sources close to the matter cited by Bloomberg on Thursday said that the California-based women's fashion retailer is trying to close the stores without filing for bankruptcy.
Nevertheless, Bloomberg's sources added, if landlords don’t agree on negotiations, seeking bankruptcy protection under Chapter 11 will be necessary.
Bebe Stores hires financial adviser to explore alternatives to Chapter 11 filing
On a related note, the Californian fashion retailer said Wednesday that it hired financial advisers to help it explore strategic alternatives, plunging its stock into the red. The previous day BEBE shredded about 35 percent of its value.
Bebe (BEBE) said it hired B. Riley & Co. as financial adviser, and engaged a real estate adviser “to assist with options related to its lease holdings.” In a corporate release, the company also stated that “There is no assurance that this process will result in any specific transaction,” and it won’t provide further updates until a specific transaction has been approved.
“There is no assurance that this process will result in any specific transaction,” and it won’t provide further updates until a specific transaction has been approved, according to the release.
Today, Bebe operates some 170 stores although everything points to a series of closures of its brick and mortar locations, following into the steps of other clothing peers which have struggle recently to maintain a sound affluence of customers to their shops. In this vein, J.C. Penney disclosed the location of the 138 stores it would close nationwide; Indianapolis-based hhgregg also shut down 88 stores, while Wet Seal and The Limited also closed stores recently after filing for bankruptcy.