Bebe Stores to Close PH8 Division

Bebe Stores Inc. (Brisbane, Calif.) is discontinuing its PH8 division, less than a year after announcing the retail concept would replace its Bebe Sport stores.

The decision affects 48 stores that will be closed or converted to the 2b bebe concept, starting in the first quarter of fiscal 2011 and finishing within a year.

The company estimates it will see total pre-tax costs of closing or converting the PH8 stores worth about $17 million, including $2 million to the write-off of the net book value of PH8's assets and up to $1 million to mark down inventory.

In May, the retailer announced it expected same-store revenue would range from falling in the mid-single digits to rising in the mid-single digits.