Caught In The Delisting Embarrassment Of American Women'S Clothing Retailers To Take The Company'S Intellectual Property Rights To Form A Joint Venture Company.

Caught in delisting embarrassed America

Retailer BebeStoresInc. (NASDAQ:BEBE) did not avoid compromising the possibility of joining the bankruptcy army. The company issued a statement on Wednesday before announcing the company's intellectual property rights.

Management company BluestarAllianceLLC set up a joint venture together.

BebeStoresInc. founder, board chairman and CEO MannyMashouf claims that the company has created a world-renowned woman for decades.

Brand, and the current market value obviously can not reflect the actual valuation of the company.

Therefore, the establishment of a joint venture through the sale of IP will bring the brand to the world.

MannyMashouf said at the same time that the deal was unanimously agreed by the board of directors, which is also the best choice for shareholders and company interests.

According to data, as of Friday closing, BebeStoresInc. (NASDAQ:BEBE) shares were priced at $0.58, a 3.33% drop in the day and a market value of only 46 million 420 thousand dollars.

According to the agreement, BebeStoresInc. will get more than 50% of the joint venture with BluestarAllianceLLC BluestarAllianceLLC and lose its brand intellectual property rights, while BluestarAllianceLLC will inject $35 million into the joint venture company, and the 35 million US dollars will be pferred to BebeStoresInc. as the paction cost of IP. Meanwhile, BluestarAllianceLLC will get less than 50% of the joint venture.

The identity of BebeStoresInc. founder MannyMashouf in the joint venture is not disclosed, but the domestic wholesale and international authorized business of BebeStoresInc. will be fully operated by the joint venture company.

With the entry into force of this agreement, BebeStoresInc. will have an impact on the licensing agreement of China Shanghai retail brand agent Langhao holdings limited by the end of August 2015.

However, even if we enter China, its business prospects are not optimistic. The analysis shows that it is difficult to find the space in China's competitive market with BebeStoreInc.'s brand recognition in China and product and retail positioning. At present, China's economic slowdown and stock market turbulence also increase the risk of brand expansion.

BluestarAllianceLLC is a new brand management company founded in 2016 by JosephGabbay and RalphGindi, of which JosephGabbay is CEO, the BrandManagementCompany subsidiary.

It is said that BluestarAllianceLLC currently manages Kensie, NanetteLepore, CatherineMalandrino, MichaelBastian, EnglishLaundry and LimitedToo, which sell a total of $1 billion 500 million brand portfolio. At present, there are 200 authorized businesses worldwide.

According to data, BebeStoresInc. group's net loss in the three quarter of fiscal 2016 increased from $11 million 250 thousand in the same period last year to $29 million 970 thousand, and the diluted share loss rose from $0.14 to 0.37 US dollars.

As of April 2nd, group cash and equivalents were only 27 million 900 thousand US dollars, a 42.4% decrease from 48 million 400 thousand US dollars in the same period last year.

Losses expanded year-on-year, sales continued to shrink significantly, and the sharp decline in cash flow was the main reason why BebeStoresInc. group sought to sell some of its assets.

In addition, BebeStoresInc. has been under pressure from outside investors. At the beginning of March, hedge fund manager MichaelZimmerman sent a letter to the BebeStoresInc. board on two th, accusing BebeStoresInc. of ignoring the interests of investors outside its controlling shareholders.

MichaelZimmerman said that during the past year's BebeStoresInc. stock price crash, he and his fund had been trying to contact the board of directors of BebeStoresInc. and MannyMashouf of controlling shareholders, but none of them had received any response.

According to statistics, as of April 2, 2016, BebeStoresInc. group's net sales decreased by 13.7% to 79 million 940 thousand US dollars a year, compared with 92 million 670 thousand US dollars in the same period last year.

Same store sales recorded a 8.1% decline, regardless of Bebe retail outlets or discount outlets channel passenger and customer unit prices are declining, international sales are also regressive.

The gross profit rate was 28.7%, down 170 basis points from 30.4% in the same period last year.

At the beginning of the year, MannyMashouf, the group's founder of BebeStoresInc., said that in the three quarter, the group adopted key restructuring measures including layoffs and end losses. In the current fourth quarter, the group will continue to streamline its production cycle, improve its product categories and further integrate its store network strategy.

During the period, the group closed 12 Bebe stores and 2 discount stores. Currently, there are 1 stores and 2 stores in the fourth quarter, and 40 stores in fiscal year 2017.

The group now expects the same store sales in the four quarter to drop to a median high figure, with a diluted loss of 0.08-0.12 dollars per share.