Bebe Stores (BEBE), a global specialty retailer, has announced the reappointment of Manny Mashouf as CEO. Furthermore, the company has also re-appointed Walter Parks as President, COO and Interim-CFO. This major change in the company’s leadership team, among other company-wide changes, are part of an organizational restructuring.
“I am extremely pleased to be returning to Bebe as CEO,” said Mashouf. “I also look forward to working with Walter as his deep financial knowledge, as well as his long history with the bebe brand, make him a great addition to our team. We believe the changes we are implementing will enable us to become a leaner and more nimble organization, allowing us to increase our focus on profitability while enhancing our product offering.”
The company also instituted a workforce reduction that will result in the elimination of 45 positions across the design, merchandising, production, information technology and support functions. As a result of this restructuring, Bebe expects to incur a one-time severance charge of approximately $3.7 million in the third fiscal quarter of 2016, with these reductions expecting to yield annualized pre-tax cost savings of approximately $6.0 million.
“We recognize that the overall macro environment has not been favorable to retailers in general, which is why we are taking steps that we believe are necessary to position the business for long-term success. We appreciate the hard work and dedication of all the employees impacted by this restructuring. We sincerely wish those impacted by this reduction the very best in their future endeavors.”
Bebe is recognized for designing, developing and producing a distinctive line of contemporary women’s apparel. The company’s 151 bebe retail stores and 38 bebe outlet stores are located throughout the United States, Puerto Rico and Canada, and also sell merchandise through their official website. Earlier this year, the company revealed their Spring 2016 “Remix, Reinvent, Redefine” collection, featuring bold, abstract prints and intense colors.
Also, last December, Bebe teamed up with Rock the Vote, the largest non-profit and non-partisan organization in the United States driving the youth vote to the polls, to help spread messaging around the importance of voting, targeting over 40 million millennial women.
By restructuring their operations and leadership team, Bebe Stores aims to remain at the forefront of the women’s contemporary fashion market. The release of their Spring collection, along with their strategic partnerships that promotes civic responsibility, the company is positioned re-emerge as a viable brand.
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