Franchise Group, Inc. Refranchises 47 Buddy’s Locations for $35 million and Signs a Development Deal for 20 Locations with bebe stores, inc
November 11, 2020 at 08:00 am EST
Share
Franchise Group, Inc. announced it has refranchised 47 Buddy’s locations to bebe stores, inc. for $35 million. The agreement also includes a planned development schedule for bebe to open 20 new Buddy’s locations. The Company intends to use the proceeds of this transaction to repay $35 million of its term loan. The impact of the refranchising agreement will reduce the Company’s annual revenue by approximately $35 million and Adjusted EBITDA by approximately $6 million, excluding any future impact from the franchisee’s new store openings.
bebe stores, inc. is primarily engaged in the business of operating retail rent-to-own franchise stores. The Company's rent-to-own Buddy's franchise stores offer furniture, appliances, and consumer electronics to consumers through rent-to-own agreements. The Company leases space for all of its Buddy's franchise stores under operating leases. It offers various product categories, including Featured, New, Clothing, Dresses, Denim, Shoes, and Accessories. Its Featured category includes Bandage Dresses, Bridal, Fall, and Halloween, among others. Its Clothing category includes Tops, Bottoms, Denim, Jackets, and Activewear, among others. Its Dresses category consists of Bandage Dresses, Bodycon Dresses, Denim Dresses, Little Black Dresses, Logo Dresses, Mini Dresses, Midi Dresses, Maxi Dresses, and others. Its Accessories include Bags, Belts, Hats, Shoes, Sunglasses, Watches. The Company operates approximately 64 stores in 12 states in the southeastern United States.
BEBE STORES, INC. 
