Bebe has encountered pessimistic financial performance over the past couple years. In 2017, Bebe reported $139 million loss, biggest in its four-year trend (shown in Figure 1). The chart in Figure 1 illustrates a four-year financial summary of Bebe Store, Inc. It shows that the net income were all below zero over the past four years, which could be one of the reasons why Bebe ended up closing all of its retail stores. In 2017, the company’s net income decreased by 39.48% (shown at Figure 2) at -139.0 million, as compared to -27.5 million in 2016. According to the balance sheet shown at Figure 3, the company’s total assets had been decreasing and it dropped tremendously in 2017. As a matter of fact, if a company fails to repay its debt in a
