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.
@deciem is all about transparency and approachability. At this year’s WWD Digital Beauty Forum, the brand's co-CEO @nicolakilner said talking to customers directly about the ingredients in products and how they work is key. #wwdsummits #wwdbeauty
‘We didn't know how relevant our film would be when we were making it. When Steven [Rogers] wrote the script Trump wasn't president, class divide in America wasn't as evident as it is now, though it was present. The Time’s Up movement hadn't began and the way we look at women and treat women who speak out — thankfully that is something that seems to have shifted in the last year. I think we just need to continue making art that provokes the conversation and do what we can,’ said ‘I, Tonya’ actress @margotrobbie. Head to WWD.com to see all the celebrities who walked the red carpet @bafta #timesup #wwdeye (📸: Neil Hall)
Gemma Arterton is joined on the @bafta’s red carpet by Eileen Pullen and Gwen Davis, the two women who started the fight for the pay-gap. ‘They represent a normal person speaking out for what is right. Speak out, we will listen and anyone can speak out,’ said Arterton. #eebaftas #timesup #wwdeye (📸: David Fisher)