Bebe to close 21 locations

In a move to avoid filing Chapter 11, the fashion retailer is planning to shutter approximately 12% of its stores.



The closures will incur an impairment charge of approximately $2.0 million and will make a termination payment to the landlord of approximately $7.4 million, according to a filing the chain made on April 4, with the Securities and Exchange Commission.



The store closures comes on the heels of the chain retaining B. Riley & Co. as its financial advisor in March. The company has also hired a real estate advisor to “assist with options related to its lease holdings.”



The company is in the process of exploring strategic alternatives for its business, and will continue that work with its remaining stores, the filing reported.



According to reports however, Bebe is trying to conduct turnaround efforts that include closing its stores and shifting its focus entirely online — another option that would eliminate the need to file for Chapter 11 bankruptcy protection.



Bebe currently operates 134 retail stores, 34 outlet stores and an e-commerce site. In addition to its stores in the United States, Puerto Rico and Canada, Bebe also distributes and sells Bebe branded product in approximately 75 doors through its licensees in more than 21 countries.