Bebe Stores Inc., US-based womenswear retailer, has announced to shutter 21 store locations in a filing with the Securities and Exchange Commission.
The fashion brand will incur an impairment charge of approximately US $ 2 million from the closures and will pay a termination fee of about US $ 7.4 million. Currently, it is in the process of exploring strategic alternatives for its business with the remaining stores.
Also Read – Bebe Stores may shut all of its stores
Bebe is soon going to join the league of retailers closing down its brick-and-mortar business and focusing on e-commerce operations.
It may be worth mentioning here that in the second quarter of current fiscal, the fashion label reported a loss of US $ 5.2 million compared to a loss of US $ 5.5 million in previous year. Net sales stood at US $ 101.9 million, a decrease of 16.8 per cent from US $ 122.4 million reported last year.
It also mentioned in its fiscal report that it will not open any new store locations in the fiscal 2017 and plans to close up to 25 stores.
