Another clothing retailer making employment
moves.
On October 1, 2015 bebe stores, inc. announced that, as a
result of the Company’s focus on more streamlined lifestyle assortments and
increased efficiencies across business functions, it has implemented a workforce
reorganization. In other words, they are reducing the number of
employees.
This reorganization will include the reduction of over 50
positions primarily in the design, merchandising, and production areas.
The Company expects pre-tax costs associated with this
initiative to be approximately $1.5 million, and anticipates annual cost savings
of approximately $4.8 million. In addition, according to their press release,
Manny Mashouf, Chairman of the Board of bebe, will be re-engaged with the
Company, working closely with the design and merchandise teams to help guide
this initiative. We wonder if Manny believes that his assistance in the
design and production process will help alleviate the disruption potentially
caused by the 50 plus people being downsized. Let’s assume the board had
limited options and had to reduce the work force. But let’s not assume or be
convinced that one person’s assistance (no matter how qualified they may be) can
replace the work being done each day by 50 plus people.
bebe also announced on October 1st that the Company's Board
of Directors has authorized a $5 million share repurchase program. Share
repurchases may be made in open market or privately negotiated
transactions, subject to market conditions, applicable legal requirements
and trading restrictions under the Company's insider trading policy. The
program may be suspended or discontinued at any time.
Jim Wiggett, Chief Executive Officer, said, “While the
decision to reduce our workforce did not come easily, it was believed to be in
the best long term interest of the Company. We appreciate the dedication of the
affected employees and thank them for their efforts.”
Mr. Mashouf commented, “I am excited to be working closely
with a very talented group of designers and merchants. I look forward to
collaborating with the teams to create great, innovative, branded product that
speaks to the needs of the bebe woman. ”
bebe stores, inc. is a global specialty retailer, which
designs, develops and produces a distinctive line of contemporary women’s
apparel and accessories under the bebe and BEBE SPORT brand names. bebe
currently operates 163 bebe retail stores, the on-line store, www.bebe.com, and
37 bebe outlet stores. These stores are located in the United States, Puerto
Rico and Canada. bebe also distributes and sells bebe branded product in
approximately 100 doors through its licensees in 20 plus
countries.
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