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Bebe Stores, Inc. Message Board

  • banana_split_52 banana_split_52 Feb 8, 2014 2:14 AM Flag

    Bebe Shopping Itself to Private Equity ??

    Reuters article posted late Friday indicates Bebe is exploring sale of company. I'm very surprised that it has decided to explore this option now in the midst of the new management team in the early stages of repositioning the company. Very curious timing. Why now?? This would help explain the recent SEC filing amending the senior officer employment agreements regarding change of control.

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    • Getting closer everyday.

    • This move makes sense. I posted a reply to a post on this board on Thursday AM. about trading this stock and someday a buyout. Manny Moshouf, the founder, still owns 60 % of the stock. He is in his 70s. His company has lost it's edge and his vision of 20 years ago is no longer hot. He may want to divest - even for estate planning reasons. He does not need the aggravation, or risk, of riding a "full turnaround". To sell out at 5-25 thousands shares a month will be a drag on the stock and take forever.
      Steve Birkhold was likely hired by Manny with full expectations to get Bebe somehow in shape for Manny' and his equity to exit.
      Steve is 51. Arranging a good deal for Bebes sale would be a nice career accomplishment - worth just as much to his professional reputation as completing a "turnaround". He will be rewarded. Steve will get millions in bonus, immediate full vesting of all stock options and incentive compensation for the deal by Manny and maybe the buyers - plus the buyers could incentivize him to stay on and mange the place or be a partner in the group. Steve wins, Manny wins, current shareholders are relieved, and Bebe moves on with private equity doing aggressive financial engineering, rationalization of stores and the business. All then outside of the trappings of a public company where shorts, public disclosure requirements, and others who may prey on the business and interfere, being neutralized and pushed out of the game.
      This is all probably mostly around Manny Mosauf retiring from retail and getting the best dollar he can for his baby - or shall I say his BEBE - as he moves to a new phase of life. I wish Manny, Steve, and shareholders success I will be hanging in for the ride. No way I cannot make money on BEBE shares, now, in the next 18 months.

      Sentiment: Hold

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