Diversified financial services platform B Riley has entered an agreement to increase its investment in women’s clothing and accessories retailer bebe.
B Riley will buy 3.7 million shares of common stock at $5.00 per share, valuing the deal at $18.5m.
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The deal is scheduled to close on 30 September 2023.
B Riley’s will then own 76% of the shares of common stock outstanding in bebe.
Bebe’s founder, chairman and CEO Manny Mashouf will continue to own approximately 4%. He plans to resign from his role shortly.
Mashouf said: “Having founded bebe more than 45 years ago, it has been a continuous and integral fabric of my life ever since. There inevitably comes a time to step away and I intend to step down from my roles at bebe in the near future.
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By GlobalData“It has been an extraordinarily memorable and rewarding journey creating bebe into an iconic brand that has embodied the fashion-forward woman with the confidence to be her best self. I am beyond grateful to the many individuals who have contributed to making my vision a reality throughout the years, including the B Riley team.”
Founded in 1976, bebe is a speciality licensor of fashion apparel and accessories.
The company distributes bebe-branded products through licensees in approximately 100 international stores and online.
Between 2020 and 2023, the brand’s licensing investments have generated approximately $11m annually in cash flow before corporate expenses.
