Management at BCBG Max Azria Group LLC has made good on its word to tap new revenue streams for the business.
The Los Angeles fashion company on Wednesday asked a bankruptcy court judge to approve a licensing agreement struck at the end of March with licensing firm Global Brands Group as management looks to source new revenue streams for the business.
The deal with GBG is good through Feb. 3 and includes global rights, except in the Republic of Korea, to make two seasons of footwear, belts, socks, legwear, jewelry and home for the BCBG Max Azria and BCBGeneration brands. The deal also includes a footwear license for BCBG Paris.
BCBG joins a portfolio of brands GBG has license to including Calvin Klein, Under Armour, Juicy Couture, Cole Haan, Kenneth Cole and Jones New York.
The agreement between the two requires bankruptcy court approval, with a hearing set for April 27. If approved, GBG would pay out $2 million upfront in addition to a percentage of net sales: 6 percent of net sales for off-price product, 5 percent for home and 8 percent on all other categories included under the deal.
Monetizing the company’s intellectual property and pumping up the wholesale division have made up the go-forward plan for the business since it filed for Chapter 11 bankruptcy at the start of March after a rugged stretch during which the company racked up debt and flailed in an increasingly competitive apparel landscape.
BCBG Max Azria last month received approval to shutter 120 underperforming doors, which had a combined loss of $10.3 million in the 2016 fiscal year. Those closures are expected to be completed by the end of the month.
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