Bebe Cuts 15% Of Corporate Workforce, Brings Back Former CEO

Bebe Stores Inc. said Friday it was cutting 45 jobs, or about 15% of its corporate workforce, as it implements a restructuring that includes bringing back its former chief executive officer, Manny Mashouf, to run the company. The troubled apparel retailer said Walter Parks is rejoining as president, chief operating officer and interim chief financial officer. Former CEO Jim Wiggett and former CFO Liyuan Woo are no longer with the company. Bebe said it is streamlining its design and merchandising areas as part of the restructuring, while cutting support functions, as it looks to cut costs by $6 million. Bebe said it expects to take a one-time severance charge of $3.7 million in the third quarter. "We believe the changes we are implementing will enable us to become a leaner and more nimble organization, allowing us to increase our focus on profitability while enhancing our product offering," said CEO Mashouf. The stock, which was still inactive in premarket trade, has closed below $1 ever since Nov. 11, 2015. It has plunged 88% over the last 12 months, while the S&P 500 has slipped 8.7%.