American clothing retailer Bebe Stores to close all stores

Bebe Stores financial news : American women’s clothing retailer Bebe Stores has announced the closing of all its stores by May end after struggling to turn around its business.

The latest move from the California-headquartered Bebe Stores will see 168 stores getting closed leaving about 700 jobs at risk, as per the LA Times.

Bebe Stores has stated that it intends to wind up all its merchandise and inventory in its existing retail stores.

The apparel retailer’s decision comes just about a month after it had revealed to explore strategic alternatives for its business after a string of losses for four consecutive years.

Bebe Stores may even file for bankruptcy to settle amicably with the owners of its stores, as reported by the Reuters.

A Bebe store in Aventura, Florida. Photo courtesy of Coolcaesar at en.wikipedia/commons.wikimedia.org.

Bebe Stores stated: “The Company expects to recognize an impairment charge of approximately $20 million, net of deferred rent and other credits, as a result of closing the Stores. This impairment charge will be recorded in the third and fourth quarters of fiscal year 2017.”

Founded in 1976 by Manny Mashouf, the American clothing retailer claims to sell clothing that is “unique, sophisticated and timelessly sexy”. Bebe Stores has been operating in not only the US mainland, but also in Peurto Rico and Canada.

Besides, it sells its products in more than 21 countries while also having an active ecommerce portal to sell its apparel. The American clothing retailer is likely to stay on as an online-only retailer after disposing all its physical stores.