High-end retailer Bebe is expecting some major changes as it looks to restructure its business.
In a filing with the Securities and Exchange Commission (SEC) on Wednesday (April 5), the specialty women's apparel chain said it plans to close 21 store locations and will incur an impairment charge of nearly $2 million as a result, CNBC reported.
The company will also pay an estimated termination fee of roughly $7.4 million.
The closure of roughly 12 percent of Bebe’s outlets is only fueling rumors that the retailer will eventually shut down all of its physical locations for a pure play eCommerce focus.
The SEC filing comes at a time when Bebe is continuing to examine strategic alternatives to help combat tumbling stock prices and increased net losses.
Rumors continue to swirl that the women’s clothing company will be the next retailer to file for Chapter 11 bankruptcy.
Last month, Bebe hired financial advisor B. Riley & Company alongside a real estate advisor to discuss future options.
With 168 locations in 21 countries, as of this March, Bebe has lost nearly $200 million in the past four years and has been trying its best to get out of retail space leases.
While moving its entire operations to the online world help to avoid bankruptcy, the company has not made any official comments on what’s next for its business.