Following dismal earnings Bebe Stores Inc. said this morning that chief executive officer Jim Wiggett and chief financial officer Liyuan Woo were no longer with the company.
Founder Manny Mashouf is now the ceo and Walter Parks has rejoined as president, chief operating officer and interim cfo. Bebe also said it will eliminate 45 positions across the company representing about 14.6 percent of its workforce. The company will streamline its design and merchandising teams and reduce support functions as it cuts back on stores.
Mashouf said, “I am extremely pleased to be returning to bebe as ceo. I also look forward to working with Walter as his deep financial knowledge, as well as his long history with the Bebe brand, make him a great addition to our team.”
The restructuring will cost Bebe roughly $3.7 million in the fiscal third quarter of 2016. Bebe just reported a second quarter net loss of $5.5 million and suspended giving guidance as sales have declined and the company tries to recover from some disastrous fashion mistakes.
Mashouf had revealed during the summer that he wanted to sell his stock, which sent the price of the shares spiraling downward. He then changed his mind and decided to come back and become more involved with the company.
This isn’t the first time Mashouf has stepped in as ceo. In 2009, he took on the role after Gregory Scott ended his five-year tenure at the top. Steve Birkhold joined as ceo in 2013, but left just a year later, when Wiggett succeeded him. Wiggett has also only lasted roughly a year.
Walter Parks served as chief operating officer for Bebe from September 2006 to May 3, 2013, until he was replaced by Woo.
The company has struggled for years to turn itself around and reclaim its glory days. Over the past five years the stock has lost 92 percent of its value. It has tried entering the eyeglass market, bridal wear and expansion into China, but nothing has clicked for the turnaround. This morning the stock is up over 4 percent to 47 cents.