Bebe Stores Inc. continues to refashion itself — this time with home furnishings.
The apparel and accessories company has agreed to purchase 47 Buddy’s Home Furnishings rent-to-own franchises from Franchise Group Inc. for $35 million.
“This is a transformational acquisition that will not only be materially accretive to Bebe’s cash flow over time, but also provides a platform for future growth through the development agreement,” Manny Mashouf, Bebe’s chief executive officer, said in a statement. “The acquired Buddy’s stores have a strong and consistent record of free cash flow generation across multiple market cycles. This acquisition diversifies Bebe’s profit stream and better utilizes existing net operating loss carryforwards.”WWD