Bebe stores, inc. (NASDAQ:BEBE) has announced a partnership deal with Bluestar Alliance to push for a global licensing model.
Bebe’s Chairman and CEO Manny Mashouf stated that his company has created one of the largest global brands in the feminine fashion world. The value of the company’s brand and its potential have however not had an impact on the perception of investors. These factors pushed the company to pursue an aggressive licensing strategy that would give Bebe stores the capacity to take advantage of the brand’s value through all the channels and categories on a global capacity.
The CEO stated that there has been noteworthy demand for licenses from applicants who can offer committed and long-term royalties. Bebe stores received $35 million as a result of the partnership and has, in turn, contributed its trademarks and affiliated intellectual property to the new partnership. Each company will receive 50% of the stake in the partnership. Bluestar will take advantage of the current brand management infrastructure and organization so that it can create a wholesale local and international lifestyle licensing business. Bluestar will also manage the business though it will be designed for the partnership.
Bluestar CEO Joseph Gabbay described Bebe stores as an iconic modern-day women’s brand that has amassed a loyal customer base, and it also receives international recognition. The CEO stated that Bebe has the potential to attract long-term growth considering that it is strategically positioned in the market. It also has an international brand recognition and numerous distribution channels. The company, therefore, offers a massive opportunity to use its global expertise to make the most out of Bebe’s segregated market position to create a modern and internationally recognized lifestyle brand.
Mashouf stated that his company evaluated their business, and the board of directors reached a unanimous decision that the partnership with Bluestar is ideal towards reaching higher heights. The CEO believes that the partnership will foster growth for the two companies and push more equity into the business.