In a filing with the Securities and Exchange Commission on Wednesday, bebe stores, inc. (NASDAQ:BEBE) said that it is committed to close 21 store locations.
As a result, the specialty women’s apparel chain will incur an impairment charge of about $2.0 million and will make a termination payment to the landlord of about $7.4 million.
The company said it is continuing to explore options with respect to its remaining stores.
At the end of March, the company announced that its board of directors is exploring strategic alternatives for the company.
The company has retained B. Riley & Co. as its financial advisor as well as engaged a real estate advisor to assist with options related to its lease holdings.
According to bebe stores, inc. (NASDAQ:BEBE), there is no assurance that this process will result in any specific transaction. The company said it does not expect to disclose further developments during the process unless and until the board has approved a specific transaction or otherwise determined that disclosure is appropriate.
For the second quarter of fiscal 2017, bebe stores, inc. (NASDAQ:BEBE) reported a loss of $5.2 million, or $0.65 per share, compared to a loss of $5.5 million, or $0.68 per share, a year ago.
Net sales were $101.9 million, a decrease of 16.8% from $122.4 million reported for the second quarter a year ago.
Comparable store sales for the quarter ended December 31, 2016, decreased 10.5% compared to a decrease of 2.5% in the comparable period of the prior year.
In its earnings report, the company said it will not open any new store locations in the fiscal year 2017 and plans to close up to 25 stores, resulting in a decrease in total store square footage of about 16% from the end of fiscal year 2016.
Shares of bebe stores, inc. (NASDAQ:BEBE) are down more than 25% year-to-date. During the last 12 months, the company’s stock has plummeted 31%.