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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.
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)
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