Bankrupt fashion retailer BCBG Max Azria Group has reached an agreement on a comprehensive restructuring.
It includes the possible sale of nearly all the retailer's assets to Marquee Brands LLC and Global Brands Group Holding Limited. The completion of the transactions with Marquee and Global Brands are expected to immediately follow approval by the United States Bankruptcy Court. The expected closing date is no later than July 31, 2017.
Marquee and Global Brands said they intend to continue to operate a substantial majority of BCBG's core businesses. Marquee will acquire the intellectual property associated with the BCBG brand, while Global Brands will acquire certain of the assets associated with the operation of the BCBG business.
Marquee Brands plans to leverage its brand management platform to grow BCBG and related brands into new product categories, distribution channels and geographies. Global Brands will market, promote, sell and distribute products bearing the BCBG brands, as well as operate the wholesale operations, select retail stores and e-commerce platform of the BCBG brands.
"This is the best possible outcome for customers, vendors, business partners, and our employees who are the lifeblood of the company," said Marty Staff, acting interim CEO of BCBG Max Azria Group. "BCBG will remain a viable, creative and strong brand going forward across multiple platforms."
BCBG, which filed Chapter 11 in March, listed assets in the range of $100 million to $500 million, and liabilities in the range of $500 million to $1 billion. The retailer has already closed 120 stores as part of its restructuring efforts. BCBG currently operates 73 retail stores, and 276 partner shops.