A deal on the table for BCBG Max Azria Group LLC is moving forward quickly.
The judge overseeing the company’s bankruptcy case on Friday approved a shortened timeframe by which any objections to the offer from Marquee Brands and Global Brands Group would need to be filed. The company early Friday morning disclosed the two brand management firms had come in together on a joint offer for both the intellectual property and some of the operations that would keep intact a portion of the company’s store fleet, while continuing an aggressive push to right the business through licensing and wholesale deals.
Objections to the planned restructure are due by June 22, with a hearing to consider the bid going before the judge the following day. BCBG said it expects the sale to close by July 31.
The deal for BCBG, which filed for Chapter 11 at the end of February, has Marquee offering $106 million in cash for its intellectual property.
Meanwhile, Global Brands Group will take on the operating company, paying $23 million in cash for inventory, contracts and as many as 22 stores. BCBG currently operates 73 stores and 276 partner stores. A spokesman for BCBG did not have information on what stores Global Brands would keep open.
The implied value of the deal totals about $165 million, the company said in court filings.
BCBG lender Allerton Funding will be paid out junior royalty fees from Marquee for use of the intellectual property as part of the proposed deal.
“This is the best possible outcome for customers, vendors, business partners and our employees who are the lifeblood of the company,” said Marty Staff, BCBG Max Azria Group interim chief executive officer. “BCBG will remain a viable, creative and strong brand going forward across multiple platforms.”
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