Friday, June 9, 2017
Bebe to pay $65M to exit all store leases
Bebe Stores, Inc. said Wednesday that it has made a series of deals that leaves it with no stores. Additionally, on May 30 it turned over its intellectual property rights, international wholesale agreements and e-commerce URLs to the joint venture (BB Brand Holdings LLC) it has with brand management company Blue Star Alliance, according to a company press release and a filing with the Securities and Exchange Commission. Bluestar in turn has a new agreement with a third party for both the URL and wholesale licenses.
The deals allow bebe to wind down its operations and keep its brand alive without declaring bankruptcy. The company also said that it’s reached agreements with “substantially all” of its store landlords that will allow it to exit its leases — a move that will cost some $65 million — according to the release. As a result, the company as of May 31 has closed all of its retail stores and laid off all store employees. . . . more