BCBG reaches restructuring agreement

BCBG Max Azria Group has announced that they and their affiliates have reached an agreement on a comprehensive restructuring plan, which contemplates the sale of substantially all the assets of the company through a Chapter 11 plan to Marquee Brands LLC and Global Brands Group Holding Limited.

Consummation of the transactions with Marquee and Global Brands is expected to immediately follow approval by the United States Bankruptcy Court for the Southern District of New York, with an expected closing date no later than July 31, 2017.

Marquee and Global Brands intend to continue to operate a substantial majority of BCBG's core businesses. Marquee will acquire the intellectual property associated with the BCBG brand, and Global Brands will acquire certain of the assets associated with the operation of the BCBG business.

BCBG announces comprehensive restructuring agreement

Marquee Brands will leverage its global brand management platform to grow BCBG and related brands into new product categories, distribution channels and new global markets. 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. BCBG will remain a viable, creative and strong brand going forward across multiple platforms," said Marty Staff, acting interim chief executive officer of BCBG Max Azria Group, LLC.

Earlier this year, BCBG made an eleventh hour attempt to recover after filing for bankruptcy. They did receive a bankruptcy loan to help maintain the company as they sought a restructuring plan.

BCBG was one of the biggest victims of the year of discontent for retail, which 2017 is turning out to be. Other retailers, like Payless, have also filed bankruptcy and closed hundreds of stores.

As BCBG moves forward, their best hope will be to bet on e-commerce in the growing digital landscape.

Photo: via BCBG Max Azria Facebook