Fashion chain Bebe Stores Inc. has clinched deals with its landlords to close its approximately 180 stores, enabling it to avoid filing for bankruptcy, and it said it plans to continue to sell merchandise online, Reuters reported yesterday. Bebe has almost no debt and a significant amount of cash, so the development was rare as many of its peers filed for bankruptcy and closed their doors this year amid intense competition from online retailers and fast-changing consumer tastes. Bebe risked having to file for bankruptcy if its landlords did not accept the deals. However, Bebe was able to offer mall owners, including Simon Property Group Inc. and General Growth Properties Inc., better deals than what they would have received in a bankruptcy protection filing. In April, Bebe said that it expected to record a charge of about $20 million related to the store closings, and that liquidators were holding store closing sales in the shops.
