The mall just lost another tenant.
Known for their club-ready looks, Bebe plans to close all doors and focus on online sales, according to Bloomberg. The news comes from unnamed sources, who say the contemporary fashion retailer is trying to turn things around without filing Chapter 11, but ultimately, that’ll be up to the chain’s landlords. If the company can negotiate exits for its hundreds if leases, the action won’t be necessary.
Plagued by low store traffic, the company announced a plan to which many other retailers can relate. In November, the company said it would close 16 percent of its retail space in 2017 to cut overhead.
Bebe, known for body conscious, trendy dresses, said in its last earnings report that it was trying to adjust assortments to reflect the more casual nature of women’s tastes these days. Bebe was looking to boost its bottoms business, which had seen success with leggings and denim, and create desirable tops.
The company’s troubles were attributed to a familiar trio: low footfall, changing tastes and the promotional environment.
Womenswear is being hit especially hard by this particular fashion bug. BCBG filed for bankruptcy earlier this month. Wet Seal filed for Chapter 22, the term for a repeat filing, last month. And The Limited was recently rescued in a bankruptcy auction by Sycamore Partners.
Bebe reported comp store sales dropped 10.5% for the second quarter, ended Dec. 28, and the company reported losses of $5.2 million in the quarter, on top of a $5.5 million loss in the previous year’s second quarter.
In June, Bebe entered into a joint venture with brand Bluestar Alliance, which resulted in a $35 million investment in the company. The brand management firm, which owns just under half of the retailer, was to develop an international lifestyle licensing business for the joint venture. This amid questions from investors about the brand’s financial standing and dealings.
Bebe was launched in 1976 by Manny Mashouf in San Francisco to fit between the juniors market and bridge. The 40-year-old chain operates more than 200 full-line and outlet stores and has more than 100 licensed international locations, according to bebe.com.
This isn’t your parent’s polyester - the scratchy fabric of yesteryear with a low-level environmental standing has evolved into a higher-functioning fiber often derived from recycled material.Read more
Inflation increased in April compared to a year ago, buoyed by increases in energy, food, shelter, transportation services and healthcare. Apparel prices rose negligibly.Read more
Retail sales surged in April, recovering from a dip in May and defying both Brexit uncertainty and inflation, but a report shows the divorce with the EU is weighing on consumers' minds.Read more
As the saying goes, necessity is the mother of invention. And these days retailers really need to find new lifelines. The result is international expansion, an off-price acquisition and a play for corporate customers.Read more
The European Commission, the legislative body of the European Union, has granted GSP Plus status to Sri Lanka, giving the country access to the EU market under the special scheme starting Friday.Read more
Ralph Lauren hired former P&G executive Patrice Louvet as its new CEO and president, while Burberry announces a new CEO as Christopher Bailey gives up the role to focus on the label's design.Read more