Following the years of declining sales and losses, a filing with the Security and Exchange Commission revealed that the women’s clothing retailer, Bebe, is shutting down all its 173 stores.
The company, on Friday, said that it will shutter all of its brick-and-mortar locations by the end of May. Bebe explained that it is “exploring strategic alternatives” to their current retail model. According to Bloomberg, the company is trying to stave off bankruptcy and that the company’s move to shut down their stores is because they’re making the brand available strictly online. Yet, Bebe remains tight lipped about this.
Bebe, which had closed down 180 stores at the end of 2016, said it was committed to closing 21 locations or roughly 12 percent of its total outlets.
In a report from Forbes, it is explained that, “the California-based company has been struggling to resonate with female shoppers and has lost money for the last four consecutive years (…) During the latest quarter, Bebe’s sales plunged 17% to $101.9 million.”
Yahoo!‘s report stated that it expects to recognize an impairment charge of approximately $20 million, net of deferred rent and other credits, as a result of closing the remainder of its stores.
With this, Bebe adds itself up to the long list of US companies closing up this 2017. There’s still no announcement whether Bebe Clothing will also shut down its stores in the Philippines, but with the growing competition of e-commerce giant Amazon and the millennial-focused fashion retailers like H&M and Zara, nothing is certain.
Bebe was founded in 1976 by Iranian-born immigrant Manny Mashouf. It became known for its skimpy women’s clothing like eye-catching, body-con dresses and tops. It is the go-to destination for chic, contemporary fashion.