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BRIEF-Bebe Stores enters into agreement to provide transition services to third party that has taken over co's online, international licensee businesses
October 2, 2017 / 10:26 AM / 3 months ago

BRIEF-Bebe Stores enters into agreement to provide transition services to third party that has taken over co's online, international licensee businesses

Oct 2 (Reuters) - Bebe Stores Inc:

* Bebe Stores - entered into an agreement to provide transition services to a third party that has taken over co’s online and international licensee businesses

* Bebe Stores - agreement is scheduled to end oct 31, 2017 and co is being paid a fee which it expects to cover substantially all of the costs of providing these services

* Bebe Stores - once agreement ends, co will transition to a holding company for co’s investment in joint venture and expect to receive a quarterly cash dividend from the investment

* Bebe Stores - in addition, co expects its operating costs to reduce to an insignificant amount on completion of transition, expected to occur by end of q2 2018

* Bebe Stores says it is considering several offers for its la studio sufficient to enable co to meet is current obligations and meet is cash flow needs

* Bebe Stores - however, if the la studio does not sell in the next twelve months co will be unable to repay the bridge loan at its maturity (May 30, 2018)

* Bebe Stores - as a result, the company has concluded that there is substantial doubt about its ability to continue as a going concern for the next year Source text (bit.ly/2xNjdLP) Further company coverage:

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