Diversified financial services platform B Riley has entered an agreement to increase its investment in women’s clothing and accessories retailer bebe.
B Riley will buy 3.7 million shares of common stock at $5.00 per share, valuing the deal at $18.5m.
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The deal is scheduled to close on 30 September 2023.
B Riley’s will then own 76% of the shares of common stock outstanding in bebe.
Bebe’s founder, chairman and CEO Manny Mashouf will continue to own approximately 4%. He plans to resign from his role shortly.
Mashouf said: “Having founded bebe more than 45 years ago, it has been a continuous and integral fabric of my life ever since. There inevitably comes a time to step away and I intend to step down from my roles at bebe in the near future.
“It has been an extraordinarily memorable and rewarding journey creating bebe into an iconic brand that has embodied the fashion-forward woman with the confidence to be her best self. I am beyond grateful to the many individuals who have contributed to making my vision a reality throughout the years, including the B Riley team.”
Founded in 1976, bebe is a speciality licensor of fashion apparel and accessories.
The company distributes bebe-branded products through licensees in approximately 100 international stores and online.
Between 2020 and 2023, the brand’s licensing investments have generated approximately $11m annually in cash flow before corporate expenses.
