White space (actually, failure to quote your variables) was only part of the problem.
You can't just pipe a variable through sed like that, it doesn't work. More precisely, it doesn't pipe the value of "$VARIABLE" through sed, the shell will try to execute the value of "$VARIABLE" and pipe the output of that through sed. BTW, this is not a bug - this is useful if $VARIABLE happens to contain a valid command like ls or rsync or whatever.
Also, if you want to assign the ouput of a command or pipeline to a variable, you need to surround that command/pipeline with $().
So, to modify a variable with sed, you need to do something like this:
VARIABLE=$(printf '%s' "$VARIABLE" | sed 's/[0-9]*//g')
You could use echo there instead of printf but echo will interpret and act on certain character sequences in $VARIABLE (e.g. \t, \n, \r, etc), while printf won't. You'll run across a lot of examples using echo...replace them with printf '%s', it's much safer.