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Friday, June 27, 2014

Bebe to exit 2b bebe affordable fashion business, cut jobs, (NASDAQ: BEBE)

Women's fashion retailer Bebe Stores Inc said it would exit its unprofitable "2b bebe" business, under which it sells affordable apparel and accessories, by July as part of a cost-cutting program.The exit will allow the company to focus on its main brand's retail and outlet stores, and online and international licensing businesses, Bebe said.The company said it would take a pretax charge of $5 million-$6 million related to the closure of the 2b bebe business, including 16 mall-based stores.Bebe also said it would lay off about 9 percent of its total non-store employees and 1 percent of its store employees, taking pretax severance costs of about $3 million in the year ending July.

bebe stores, inc. designs, develop and produce a distinctive lines of contemporary women's apparel and accessories. Shares of BEBE traded higher by 0.64% or $0.02/share to $3.15. In the past year, the shares have traded as low as $3.07 and as high as $7.03. On average, 483577 shares of BEBE exchange hands on a given day and today's volume is recorded at 1245616.