- Kristopher Fraser |
Bebe Stores Inc. has confirmed in a Securities & Exchange Commissions filing that it will close all of its stores next month. Their shares were down 10 percent this morning during trading.
Shares were trading at three dollars and 38 cents for a market capitalization of 27.27 million dollars.
While the company has been very secretive about its restructuring plan and approach to their brick-and-mortar stores, all the signs were flying high for a mass round of store closures. Layoff notifications were filed in individual states, and the California Employment Development Department was warned of 700 cuts at various stores throughout the state.
The company struck a deal this week with Great American Group LLC and Tiger Capital Group LLC to begin selling furniture and store equipment.
The filing also stated that Bebe will incur a 20 million dollar impairment charge.
Originally the retailer planned to close 21 stores, but in the end, shuttering all brick-and-mortar proved more economically feasible.
Bebe joins many other American retailers, including Macy's and Payless, who are in the spring of discontent for store closures. The retail bubble appears to be bursting as brick-and-mortar stores are closing left and right as consumer habits switch more to online and mobile commerce. The days of actually going out to shop are dying.photo: via Bebe Facebook page