Bebe announces over 700 layoffs effective next month

As Bebe has confirmed shuttering some stores, mass layoffs have been issues as of late. Recently, the California-based retailer has over 700 layoffs that are to be effective starting late next month.

In a notice to the California Employment Development Department, Bebe Stores Inc. stated that approximately 717 layoffs will be effective on May 27, according to WWD. There will be about 136 layoffs at the headquarters of Bebe at Brisbane. Additionally, Los Angeles will suffer 160 layoffs at its office for design. Other company stores affected include locations in San Diego, San Francisco, Newport Beach, Torrance, Camarillo, Cabazon, and Brea.

As the company seems to move more towards a focus on online stores, it will be shuttering a lot of its locations resulting in these layoffs. Last week, the retailer confirmed with the Securities and Exchange Commission that it would shutter about 21 stores, as reported by WWD. The shuttering of the 21 stores would be at a cost of $9.4 million in impairment charges and landlord termination payments. Also, last year the retailer had partnered with Bluestar Alliance LLC. The retailer put up its intellectual property and Bluestar contributed 35 million dollars into a joint venture according to WWD. While it is not confirmed, it seems that the retailer could be headed towards closing all of its retail locations.

Bebe has mass layoffs and aims to shutter 21 stores

Established in 1976 in San Francisco, Bebe currently has 170 brick-and-mortar stores. The Brisbane-based retailer posted a notice, according to the Sacramento Bee, that a combined number of 40 employees would be laid off at its locations in the Sacramento area. This will include the location of the Arden Fair mall in Sacramento, the Westfield Galleria at Roseville, and at Folsom Premium Outlets. These stores will be permanently closed due to the new change.

Bebe also is working with a financial advisor to explore its options moving forward. Last month, the company has been exploring “strategic alternatives” to help the contemporary fashion retailer. As reported by FashionUnited, Bebe Stores’ net sales for the fiscal second quarter ended December 31, 2016 were 101.9 million dollars, resulting in a decrease of 16.8 percent from the previous year second quarter at 122.4 million dollars. Also, FashionUnited reported that store sales decreased 10.5 percent from a decrease of 2.5 percent in the same period the year before. Currently, according to the brand’s LinkedIn page, Bebe currently employs about 2,158 employees. While there will still be a significant number of employees to hold on to their jobs, with the current retail climate in jeopardy there’s no telling what will happen to the rest of Bebe’s flagships.

Photo: Bebe

 

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