Apparel retailer Bebe Stores says to shut all stores (updated)

bebe stores

21/04/2017 12:17

(Adds details, background) 
    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 also plans to liquidate all merchandise and 
fixtures within the stores, it said in a regulatory filing on 
Friday. (http://bit.ly/2obl8s3) 
    Bloomberg reported last month that Bebe was planning to shut 
stores and seek a turnaround as an online brand to avoid filing 
for bankruptcy.  urn:newsml:reuters.com:*: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 company did not say what its future plans were. 
    The Brisbane, California-based retailer, known for its 
form-fitting dresses and other apparel, had 180 stores at the 
end of 2016. 
    The company will also pay advisors 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/