Bebe Stores Inc. has officially gone under

By

Cassidy Mantor

Published
Jun 7, 2017

Bebe Stores Inc. has announced the completion of its reorganization which includes a $65 million dollar agreement with its retail landlords to terminate all of its store leases and back out of future retail business.

Bebe has entered into a temporary loan agreement with GACP Finance CO, LLC who will front $35 million to the Brisbane, CA-based company to pay the outstanding store leases until Bebe completes the sales of its real estate properties.

The properties Bebe is liquidating include its distribution and design centers. Bebe's distribution center in Benicia, CA has been sold for $22 million. Bebe expects to close the sale in the next 60 days.

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Bebe is also actively trying to sell its Design Center in Los Angeles.

Through a joint venture agreement, Blue Star Alliance has received the transfer of the Bebe.com URL and for the brand's international wholesale agreements. Blue Star Alliance has in turn executed a royalty agreement with a third party for the Bebe.com website and international wholesale business.

Bebe will also be selling certain inventory through an agreement designed to help ease management of the website and international wholesale going forward.

The future of Bebe is lean. The company expects no retail operations in the future. Its only operations will be the collection of royalty income from the joint venture agreement.