Brief: Bebe Stores enters into agreement to provide transition services to third party that has taken over co's online, international licensee businesses

bebe stores

02/10/2017 11:13

Oct 2 (Reuters) - Bebe Stores Inc  BEBE.O : 
    * Bebe Stores - entered into an agreement to provide 
transition services to a third party that has taken over co's 
online and international licensee businesses 
    * Bebe Stores - agreement is scheduled to end oct 31, 2017 
and co is being paid a fee which it expects to cover 
substantially all of the costs of providing these services 
    * Bebe Stores - once agreement ends, co will transition to a 
holding company for co's investment in joint venture and expect 
to receive a quarterly cash dividend from the investment 
    * Bebe Stores - in addition, co expects its operating costs 
to reduce to an insignificant amount on completion of 
transition, expected to occur by end of q2 2018 
    * Bebe Stores says it is considering several offers for its 
la studio sufficient to enable co to meet is current obligations 
and meet is cash flow needs 
    * Bebe Stores - however, if the la studio does not sell in 
the next twelve months co will be unable to repay the bridge 
loan at its maturity (May 30, 2018) 
    * Bebe Stores - as a result, the company has concluded that 
there is substantial doubt about its ability to continue as a 
going concern for the next year 
 
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