Bebe Closing 2017: Mall Chain Plans to Shutter All Stores

Bebe stores, inc. (NASDAQ:BEBE) is reportedly planning to close all of its physical retail locations.

Bebe Closing 2017: Mall Chain Plans to Shutter All Stores

According to unnamed sources, the mall retailer is looking to close all of its stores and switch to an online only retail experience. The Bebe closing reports come after an announcement last month that it will close up to 25 stores in fiscal 2017.

The insider sources told Bloomberg that the company is hoping to complete its Bebe closing plans without having to file for bankruptcy. However, it may run into trouble with landlords as it tries to get out of its leases in mall across the United States.

One benefit that the mail chain has over other companies that have been filing for bankruptcy recently is that it doesn’t have any significant debt. This should help it if it really is attempting to transition to a retailer that only sells its goods to customers online, reports Bloomberg.

Reports that bebe stores, inc. will close all of its psychical retail locations may not be much of a surprise. The company has lost roughly $200 million in the last four years. Malls in the United States have also seen a decline in traffic as customers turn toward online shopping.

Reports that the Bebe closings will include all of the company’s physical stores come as many other retailers are filing for bankruptcy. Fellow mall chain Payless ShoeSource is reportedly planning to announce its bankruptcy as soon as next weekRadioShack, The Limited Stores and American Apparel are among the list of stores that have filed for bankruptcy in the last few months.

BEBE stock was up 1% as of Thursday afternoon, but is down 25% year-to-date.


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