[3/23/17] Bebe Stores Inc., a women’s apparel chain with locations across the U.S., is planning to shut its stores and seek a turnaround as an online brand, according to people familiar with the situation.
The company is trying to close the locations without filing for bankruptcy, said the people, who asked not to be identified because the efforts aren’t public. However, Chapter 11 may be required if enough landlords aren’t willing to negotiate, they said. The company, known for selling trendy going-out apparel to young women, has been operating about 170 boutique and outlet stores.
Bebe would become the latest retailer to shed brick-and-mortar stores and hitch its fortunes to e-commerce. Kenneth Cole Productions said in November that it would close almost all of its locations, concentrating instead on its online, international and wholesale businesses. A consumer shift to the internet has contributed to several retail bankruptcies this year, including those of HHGregg Inc., Gordmans Stores Inc.and RadioShack.
Unlike many retailers, Bebe has no significant debt. But the company has lost about $200 million over the past four years, and negotiating with landlords to get out of leases may prove difficult. The retailer didn’t immediately respond to requests for comment.
