BCBG Max Azria Group LLC filed for bankruptcy protection late Tuesday following the company’s previously announced plans to restructure with store closings and a renewed focus on digital.
A separate filing for the company’s Canadian business is also expected.
The company has arranged $45 million in debtor-in-possession financing. BCBG listed assets of between $100 million to $500 million and liabilities of between $500 million to $1 billion in its bankruptcy petition, filed in New York bankruptcy court for the Southern District.
“BCBG is an iconic brand that launched the contemporary sector over 28 years ago,” said interim chief executive officer Marty Staff. “The steps we are taking now, to address the shift in customer shopping patterns and the growth of online shopping, will allow us to focus on our partner relationships, digital, e-commerce, selected retail locations and wholesale and licensing arrangements. The Chapter 11 filing will further aid the implementation of these steps and overall strategy while we explore opportunities to recapitalize the company and profitably expand our international footprint.”
The company previously announced a fleet rationalization that included 120 store closures, along with plans to shutter stores in Canada and consolidate its businesses in Europe and Japan.
BCBG is the latest retailer to fold under a tough operating environment for many.
The Limited began liquidating stores in January, which was followed by a Chapter 11 filing that same month and a $26.8 million deal with Sycamore Partners for its intellectual property. Wet Seal followed in similar fashion with store liquidations beginning in January and followed by a bankruptcy filing in early February. The teen retailer now has a stalking horse bid on its brand amounting to $1.5 million from Canadian retailer YM Inc. That follows other recent bankruptcy filings by American Apparel, whose intellectual property and some equipment was recently sold out of bankruptcy, to Gildan Activewear Inc. for a total purchase price of $103 million. There was also Boohoo.com plc’s recent purchase of the Nasty Gal intellectual property in a $20 million deal.