Clothing retailer Bebe has announced its plans to close all its stores by the end of May.
According to a filing with SEC, the company has entered a consulting agreement with its financial adviser Great American Group, and Tiger Capital Group.
It plans to sell all company merchandise and inventory, as well as several of its subsidiaries in its existing retail stores.
Tiger Capital Group will be paid $550,000 in consideration for its services, plus reimbursement for certain expenses, and receive an additional fee of 15% of the gross proceeds generated from the sale of the furnishings, trade fixtures, equipment and improvements to real property.
The agreement also contains customary representations, warranties, covenants and indemnities by Bebe and Tiger Capital Group.
The retailer stated that it may incur a loss in relation with this sale of merchandise and inventory. However, it has not stated how much loss it would incur.
Bebe expects to recognise an impairment charge of approximately $20m, net of deferred rent and other credits, as a result of the closure of the stores.
The company has not indicated whether it intends to continue operating its website.
In March, it appointed financial and real estate advisers to explore strategic alternatives.
Image: Bebe headquarters in Brisbane, US. Photo: courtesy of Coolcaesar via Wikipedia.