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.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)