As the word goes around, Bebe is likely to close its brick and motor stores in the course of this year. This fashion label for women is simply joining the growing list of retailers who have been closing their shopping malls. Bebe was one of the leading retailers for any woman who wanted to look hot while going out in the early 2000’s.
According to an anonymous source that is close to this situation, the company intends to focus more on web sales as a move to avoid bankruptcy filing. It is very hard for the label to avoid chapter 11 especially if the landlords refuse to negotiate.
Bebe once received collaborations on jewelry and fashion with Mischa Barton and the Kardashian sisters. Currently, the label has no significant debt. The fashion retailer has accumulated close to 200 million dollars in debt over the past four years.
The shocking revelations also show that the stock of Bebe has significantly reduced by over 80 percent in the past two years. This is a very huge reduction within a short period for such a brand that was once great. The management believe that they can redeem their place in the market by closing the brick and motor stores.
This will cut down on the rent and payroll expenses which form part of the biggest expenses for the retailer. However, it will be to the disadvantage of those retailers who like visiting their physical stores. Bebe may end up losing some of its loyal customers who have been with the brand in booming and low seasons.
According to our source, the store will go ahead with its closure plans even though it recorded some small resurgence last month. According to the previous announcement from the company, it will be shuttering down close to 25 physical locations in 2017. This means that several closures will take place in the course of next year if these sources are correct.
This news comes at a time when several retail stores are closing down in the global economy. Some of them include Abercrombie that announced that it will be closing close to 60 stores in 2017 and the former competitor BCBG who filed their bankruptcy report earlier this month. The question that most people are asking themselves is what is happening in the global economy. Why are we experiencing a persistent increase in business closures?
In fact, we are headed to an era where all the renowned malls are likely to become extinct. The decision of Bebe may assist it to survive from filing bankruptcy. The company will take most of its business to the online platform. The question that most people are asking themselves is whether it will be able to reclaim its position in the market.
Will Bebe regain its former glory or is this the first nail to its coffin? This could be an indication that the company could be on the verge of going under. No one will be surprised if Bebe announces more closures for next year or even this year.