Bebe Stores sold clubwear for 41 years — then closed all 175 stores in one day

Bebe Stores was founded in 1976 in San Francisco by Iranian immigrant Manny Mashouf. Named after a line from a Shakespeare play ('to be or not to be'), the brand became known for body-hugging clubwear, bold displays, and the signature 'Bebe' logo that defined 1990s and early 2000s mall fashion. At its peak, Bebe operated 175 stores across the US and generated $603 million in annual revenue.

But the retail landscape was changing. Mall traffic declined, fast-fashion competitors like Zara and H&M captured younger shoppers, and the clubwear trend faded as casual dress became the norm. Sales dropped steadily through the 2010s, and by 2017 the chain was losing money. On April 21, 2017, Bebe announced it would close all 175 brick-and-mortar stores immediately, taking a charge of approximately $20 million.

The brand survived as an online-only retailer through a partnership with Global Brands Group, and briefly experimented with a new concept store in New York City in 2018. But the licensee, Centric Brands, filed for Chapter 11 bankruptcy in May 2020 during the COVID-19 pandemic, and Centric Bebe LLC was part of the filing. The physical Bebe chain that had dressed a generation of clubgoers was gone.

Manny Mashouf, who had owned 76% of the company, took Bebe private in 2006 at $41 per share — the stock had already begun its long decline. By the time the stores closed, the brand that had once been a mall staple was a cautionary tale about the fragility of trend-driven retail.