Bebe Stores To Liquidate, Close All Stores

Bebe Stores Inc. announced Friday that it will liquidate all merchandise and inventory and close all stores by the end of May 2017. In the 8K filing, the women's clothing and accessories retailer said it would also sell certain furnishings, fixtures and equipment. The company expects an impairment charge of about $20 million from deferred rents and other credits, a result of the store closures. The impairment charge will be recorded with the third and fourth quarters of 2017. And it may incur a loss from the sale of its merchandise. Bebe had 180 retail stores as of Dec. 31, 2016 and about 2,601 employees as of July 2, 2016, according to filings. The company had anticipated closing up to 25 stores in 2017. Bebe shares are down 0.3% in premarket trading and down 37.3% for the past year.

Copyright © 2017 MarketWatch, Inc.