Bebe Stores Inc. shares were off 10 percent in morning trading after the Brisbane, Calif.-based retailer confirmed in a Securities & Exchange Commission filing it will close all of its stores by the end of next month.
Shares were trading at $3.38 for a market capitalization of $27.27 million.
The retailer had been tight-lipped on plans for its retail fleet despite store employees confirming the closures to WWD earlier this month and some layoff notifications filed in individual states. Among those was the warning to the California Employment Development Department this month of more than 700 cuts at various stores throughout the state in addition to the company’s headquarters and Los Angeles design studio.
The company said it will begin the sale of store equipment and furniture via a deal with Great American Group LLC and Tiger Capital Group LLC struck this week. Bebe will pay $550,000 for the two groups’ services plus 15 percent of what the company grosses from the store equipment sales.
Bebe also said in its filing the store closings will result in a $20 million impairment charge.
The business update follows a disclosure earlier this month from the retailer that it would shutter 21 doors, incurring an impairment of $2 million plus a termination payment to the landlord of $7.4 million.
Store associates had in March confirmed to WWD the chainwide store closure plan.
The company earlier in the year hired B. Riley & Co. as financial adviser in a move that, at the time, also came with the disclosure that Bebe was exploring strategic alternatives.
Last year the company formed a joint venture with Bluestar Alliance LLC, which saw Bebe give up its intellectual property rights in exchange for $35 million.
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