Bebe has entered into an agreement with UBS, whereby UBS agrees to repurchase $84.4 million of auction rate securities (ARS) at par back from the company at any time after June 30, 2010 at the company's request. I'd prefer to see this sooner, but it is nice to know they will shake loose a large part of the money tied up in ARS by a date certain.
There are still another $125.2 million of illiquid auction rate securities held by the company not subject to this agreement. I hope they are going after the other firms that like UBS sold the company these securities.
The company has $143 million of cash on hand, which will allow them to ride out this rough patch. During the last quarter, the company repurchased 537K share for $3.2 million ($5.96 per share) out of the $30 million buyback authorization.
Bebe was still cash flow positive for this last quarter despite the ugly retailing environment. Bebe is in much better shape than most other retailers.
It will be interesting to see of they close down the Bebe Sport chain and fold this product back into the regular Bebe stores, where it was originally.