Barely a month after announcing its plans to explore strategic alternative options to boost the brand’s presence and sales by cutting down on positions, international apparel retailer Bebe Stores Inc. has announced that it will be shuttering down all of its stores by the end of May, this year.
The struggling fashion retailer has planned to liquidate all merchandise and fixtures present within the stores, it disclosed in a regulatory filing on Friday.
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The retailer expects to recognize an impairment charge of around US $ 20 million from the aforementioned store closures, which will be recorded in the third and fourth quarters.
This instance just goes on further to bring to light the dwindling impact of retail in the face of rising e-commerce competitors. Industry statistics show that since last year, over 89,000 retail workers have been laid off. Bankruptcy is on an all-time rise with retail giants such as, American Apparel, BCBG Max Azria and Wet Seal to name a few.
In a situation and environment like this, all findings point towards Bebe looking at coming up with plans to avoid going bankrupt.
