Women’s apparel retailer Bebe Stores Inc. will close all of its retail stores before the end of the third quarter, according to Securities and Exchange Commission filings. Liquidation firm Great American Group, a subsidiary of B. Riley Financial Inc. in Woodland Hills, will oversee the sale of Bebe’s assets in conjunction with Tiger Capital Group.
Known for its fitted t-shirts bearing a rhinestone-encrusted logo, Bebe became a mall mainstay in the 1980s. It is among many brick-and-mortar stores that have struggled to keep up with the industry’s evolution in the wake of online shopping, reporting sales declines of more than 10 percent in the first quarter of 2017.
Bebe anticipates an impairment charge of roughly $20 million due to the closings, the SEC filing said. All stores will shutter by the end of May, including locations in Glendale, Sherman Oaks, Canoga Park and Camarillo. Area closures will result in 55 layoffs, according to a notice filed with California’s Employment Development Department.
Meanwhile, the wave of retail closures has been good business for Great American, which is also liquidating the inventory of department store chain Gordmans and home furnishings seller HHGregg following their Chapter 11 bankruptcy declarations in March. Great American and Tiger Capital will receive $550,000 for the provision of consulting fees to Bebe, in addition to 15 percent of gross proceeds from the sale of its assets.
The stock of Great American parent company B. Riley Financial Inc. on Friday fell 5 cents, or less than 1 percent, to close at $14.75 on the Nasdaq.