bebe stores, inc. Announces Organizational Restructuring

Manny Mashouf Rejoins Management Team as Chief Executive Officer and
Walter Parks Rejoins the Company as President, Chief Operating Officer,
and Interim-Chief Financial Officer

BRISBANE, Calif.–(BUSINESS WIRE)–bebe stores, inc. (NASDAQ:BEBE) today announced that Manny Mashouf has
rejoined bebe’s management team as Chief Executive Officer and that
Walter Parks has rejoined as President, Chief Operating Officer and
Interim-Chief Financial Officer. Former Chief Executive Officer and
Board Member Jim Wiggett and former Chief Financial Officer Liyuan Woo
are no longer with the Company.

bebe further announced that it has instituted a workforce reduction that
will result in the elimination of a total of approximately 45 positions
across the design, merchandising, production, information technology and
support functions of the Company. This represents approximately a 14.6%
reduction in corporate headcount. As part of the reduction, the Company
is streamlining its design and merchandising teams, while reducing
support functions in recognition of the rationalization of the store

As a result of this restructuring, the Company expects to incur a
one-time severance charge of approximately $3.7 million in the third
fiscal quarter of 2016. These reductions are expected to yield
annualized pre-tax cost savings of approximately $6.0 million.

Mr. Mashouf said, “I am extremely pleased to be returning to bebe as
CEO. 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. 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.”

Forward-Looking Statements

Certain statements in this release are “forward-looking statements” made
pursuant to the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements reflect
the Company’s current expectations or beliefs concerning future events
and are subject to various risks and uncertainties that may cause actual
results to differ materially from those that we expected. The statements
in this news release, other than the historical financial information,
contain forward-looking statements that involve risks and uncertainties
that could cause actual results to differ from anticipated results.
Wherever used, the words “expect,” “plan,” “anticipate,” “believe” and
similar expressions identify forward-looking statements. Any such
forward-looking statements are subject to risks and uncertainties and
the company’s future results of operations could differ materially from
historical results or current expectations. Some of these risks include,
without limitation, miscalculation of the demand for our products,
effective management of our growth, decline in comparable store sales
performance, ongoing competitive pressures in the apparel industry,
changes in the level of consumer spending or preferences in apparel,
loss of key personnel, difficulties in manufacturing, disruption of
supply, adverse economic conditions, and/or other factors that may be
described in the Company’s annual report on Form 10-K and/or other
filings with the Securities and Exchange Commission. Future economic and
industry trends that could potentially impact revenues and profitability
are difficult to predict. We undertake no obligation to publicly update
or revise any forward-looking statement. Financial schedules are
attached to this release.

About bebe stores, inc.:

bebe stores, inc. is a global specialty retailer, which designs,
develops and produces a distinctive line of contemporary women’s apparel
and accessories under the bebe and BEBE SPORT brand names. bebe
currently operates 151 bebe retail stores, the on-line store,,
and 38 bebe outlet stores. These stores are located in the United
States, Puerto Rico and Canada. bebe also distributes and sells bebe
branded product in approximately 100 doors through its licensees in 20
plus countries.


bebe stores, inc.
Walter Parks, President, COO and Interim-CFO,