Bluestar Invests in Bebe Licensing

Bebe Stores has entered into a joint venture with Bluestar Alliance to help drive further growth of the brand through the execution of a global licensing model.

April 6, 2018

Longstanding fashion label plans to grow worldwide through new licensing program.

Bebe Stores has entered into a joint venture with Bluestar Alliance to help drive further growth of the brand through the execution of a global licensing model.

In return for its trademarks and related intellectual properties, Bebe will receive a little more than 50 percent of the venture; while Bluestar contributed $35 million for the remaining shares.

“Over decades we built one of the great global brands in the women’s fashion world. However, the value of our brand, its reach and potential is clearly not reflected in investors’ current perception of the company and its valuation,” says Manny Mashouf, founder, chairman of the board and chief executive officer, Bebe. “The strategic decision to aggressively pursue a licensing strategy allows us to capitalize on the value of our brand in all categories and channels on a global scale. We have seen significant demand from prospective licensees and expect to generate long-term, committed royalties.”

Bluestar will leverage its existing brand management

organization and infrastructure to develop a domestic and international lifestyle licensing business for the joint venture, as well as manage its day-to-day operations.

“Bebe is an iconic contemporary women’s brand with a loyal customer base and growing international presence. We believe the company has significant long-term growth potential given its distinct market position, multiple channels of distribution and growing international brand awareness,” says Joseph Gabbay, chief executive officer, Bluestar. “We see a tremendous opportunity to leverage our brand expertise and capitalize Bebe’s differentiated market position to build a global contemporary lifestyle brand.”