Bebe may go online only

Bebe Stores, the Brisbane women’s apparel chain with locations across the country, is reportedly planning to shut its stores and seek a turnaround as an online brand.

The company is trying to close the locations without filing for bankruptcy, said people familiar with the situation, who asked not to be identified because the efforts aren’t public. However, Chapter 11 may be required if enough landlords aren’t willing to negotiate, they said. The company, known for selling trendy going-out apparel to young women, has been operating about 170 boutique and outlet stores.

Bebe would become the latest retailer to shed brick-and-mortar stores and hitch its fortunes to e-commerce. Kenneth Cole Productions said in November that it would close almost all of its locations, concentrating instead on its online businesses. A consumer shift to the Internet has contributed to several retail bankruptcies this year.

Unlike many retailers, Bebe has no significant debt. But it has lost about $200 million over the past four years, and negotiating with landlords to get out of leases may prove difficult. The company didn’t immediately respond to requests for comment.

Manny Mashouf, who founded the company in San Francisco in 1976, owns 57 percent of its stock. He remains chairman and CEO, but last year, Bebe sold half of its brand to Bluestar Alliance to develop a wholesale licensing business, a move that helped raise cash.

The stock has fallen more than 80 percent over the past two years, though it began to rebound last month.