Past year the company formed a joint venture with Bluestar Alliance LLC, which saw Bebe give up its intellectual property rights in exchange for $35 million. The company said it was not clear yet how large a loss the decision would trigger. Same-store sales for the quarter that ended December 31, 2016, plunged 10.5%.
Bebe did not immediately return messages from CNNMoney asking whether it plans to go out of business or transition to online-only.
"We may incur a loss in connection with this sale of our merchandise and inventory, but we can not estimate such loss at this time", Bebe said.
The company said it will begin the sale of store equipment and furniture via a deal with Great American Group LLC and Tiger Capital Group LLC struck this week.
Bebe joins a number of struggling companies like Macy's, JcPenney and Sears that are closing hundreds of stores and cutting thousands of jobs. The Agreement also contains customary representations, warranties, covenants and indemnities by the Company and Consultant. Net sales for the formerly profitable Bebe were $101.9 million in the second quarter of the 2017 fiscal year, a decrease of 16.8 percent from $122.4 million reported for the second quarter a year ago.
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No one is going to give us this league, we have to work for it like we have done for the majority of this season. "We gave them double problems".
It's curtain time for Bebe Stores - or at least its brick-and-mortar operations.
Bebe was founded by CEO Manny Mashouf in San Francisco in 1976.
Shares were trading at $3.38 for a market capitalization of $27.27 million.
The fashion retailer has suffered four straight years of losses.
Bebe is a victim of retail migration to e-commerce.