Bebe Stores Inc. said it will exit its 2B business by July 5, the end of fiscal 2014.
The company also has identified key initiatives as part of a cost-reduction program that is expected to generate $9 million to $10 million in annualized pretax savings beginning in fiscal 2015.
The company is exiting 16 2B mall-based stores and its e-commerce business so that the specialty chain can focus on its core Bebe brand retail and outlet stores, e-commerce and international licensing businesses.
The company said the cost-reduction program will target both direct and indirect spending across the organization, including plans to reduce corporate and field management positions.
Jim Wiggett, interim chief executive officer, said, “The steps we are announcing today build on our turnaround efforts from the past year.”
He said that as the company prepares for the next fiscal year, it will “continue to evaluate our cost structure, capital expenditure requirements and dividend payments, and we will remain focused on carefully managing expenses and inventories, as well as preserving our cash.”
Wiggett became the interim ceo earlier this month when Steve Birkhold resigned as ceo after just 17 months on the job. Birkhold had succeeded Manny Mashouf, Bebe’s founder who continues as non-executive chairman.
Bebe said it expects fourth-quarter comparable-store sales in the negative low-single-digit range and a loss per share in the midteen range prior to any non-recurring expenses.