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Bebe Selling Its Main Office in Los Angeles
Long-time retailer Bebe, which was based in Northern California but had a major presence in Los Angeles, said it is selling its main LA office building for $28.5 million.
A buyer was not disclosed for the building at 10345 W. Olympic Blvd., where the retailer’s design studios once were located. The deal is expected to close on May 21.
Last year, the publicly traded company shut down all 168 of its retail stores, laid off 700 employees and now is making money from licensing its brand name.
The strategy was part of the remake of Bebe, a once fashion-centric retail chain started in San Francisco in 1976 by Iranian-American businessman Manny Mashouf.
The shuttering of stores and closing the company’s design studio and offices helped the retail chain avoid bankruptcy after selling half the brand for $35 million to Bluestar Alliance, a New York brand-management company that has snapped up labels such as English Laundry, Nanette Lepore and Catherine Malandrino.
The stores might have been dead, but last August, Bluestar Alliance came out with a new collection of sexy dresses with new sizes and new categories. Later, the Bebe brand opened its first lifestyle store in New York City, located near the Empire State Building at 1 W. 34th St.
Licensing revenue for the second quarter of this year totaled $2.1 million from BB Brand Holdings, Bebe’s operating subsidiary. Bebe plans to distribute its share of licensing income, minus company operating expenses, to shareholders starting in the first quarter of 2019.
In addition, Joe Scirocco, the company’s managing director, treasurer and principal financial and accounting officer, resigned from his job, effective April 20. Company executives said Scirocco’s resignation further streamlines company expenses.
