BCBG Max Azria Group is in transition mode.The company has been trying to restructure its $685 million in debt for nearly a year. Guggenheim Partners holds about $475 million of the debt, with $230 million on a first-lien term loan and $245 million on a second-lien term loan. The balance was drawn down from a revolving credit facility. Talks last year included a refinancing that would convert the debt into equity, and that would have Guggenheim taking control of the company.Those discussions have continued into 2014, with a resolution expected shortly. Sources said that discussions include Max Azria becoming a minority shareholder and taking on a narrower role, such as heading up design. That would also mean hiring an executive to oversee day-to-day business operations, as well as hiring others to deepen the management bench.BCBG and Guggenheim both declined comment on any specifics related to the finances or debt restructuring.The company declined to reveal its annual volume. Sources pegged it at around $950 million in 2010, but sources said revenues are currently below that.The company’s brands remain highly regarded in the industry, but there’s now increased competition in the contemporary market, and more fashion-forward brands emerging in the fast-fashion sector, where prices are lower.BCBG Max Azria has battled against financial pressures on and off in recent years. In 2001, market sources said that the company had some financial constraints from its attempt to exit unprofitable leases that were the result of an aggressive expansion plan. To Azria’s credit, in 2004 and in 2011, he found ways to resolve the firm’s financial pressures.Ten years ago, in December 2004, the company orchestrated a $53 million bond offering via a private placement. The investment-grade bonds were backed by the securitization of BCBG’s trademarks. At the same time, BCBG entered into a new $100 million working capital credit facility.The bond offering also helped the company pay down its debt to its longtime lender, GMAC Commercial Finance.Shortly after the 2004 deal closed, plans at BCBG included further retail expansion and consideration of a men’s line. In an interview with Azria at the time, he was already visiting Madrid and London to explore potential footholds for European expansion of the company’s brands.In 2006, BCBG acquired the Max Rave chain, which it liquidated in 2011. Also that year, it inked a deal to sell a ready-to-wear line called Tex by Max Azria at Carrefour in France, Spain, Italy, Belgium, Portugal and Greece. That program was ended in 2009.In May 2011, BCBG refinanced its debt again with a $230 million term loan from Guggenheim. Now the company is said to be looking for further ways to restructure its debt.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews