In an attempt to avoid losses, Bebe Stores Inc. is planning on shuttering stores and increasing their online presence. The retailer, whose focus is on dressing the “confident, sexy, modern woman” is looking to close around 170 stores, according to Bloomberg.
We’ve seen the strategy with many retailers before; closing stores to decrease costs like rent and employees. But will the strategy work? According to sources, the company is trying to make moves without filing for bankruptcy, though, if landlords aren’t willing to negotiate, the process may be inevitable.
Things don’t look so bad for the womenswear retailer, though. Unlike some of the other retailers that have recently shuttered or decreased physical store locations, Bebe has no significant debt. They did, however, lose approximately $200 million over the past four years. It’s not great but there is still hope for the 2000s mall favourite.
Currently, the majority of Bebe stores are located in the U.S with only 8 full-price stores and outlets across Canada. The retailer has already announced store closures for the year and in February, said it could be shuttering as many as 25 locations. No store closures have been announced for Canada yet.
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Featured Image: Instagram/@bebe_stores
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