US Bank­ruptcy Court ap­proves bids for BCBG

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The US Bank­ruptcy Court in

New York has ap­proved bids from Mar­quee Brands and Global Brands Group Hold­ing to buy out strug­gling fash­ion la­bel BCBG Max Azria for a to­tal of US $ 165 mil­lion. The court or­der states that both the la­bels’ in­tel­lec­tual prop­erty rights as well as op­er­a­tional priv­i­leges for the 22 brick and mor­tal re­tail lo­ca­tions in Los An­ge­les will now be jointly suc­ceeded by Global Brands and Mar­quee. The win­ning bid was placed on June 9, far be­fore the June 20 dead­line im­posed by the court and a fi­nal ap­proval to con­firm the re­or­ga­ni­za­tion plan for the brand is likely to be made by July 31.

As is cus­tom­ary with bank­ruptcy pro­ce­dures, sev­eral bod­ies of­fered bids to the court to gain fi­nan­cial in­ter­est in BCBG. How­ever, the win­ning bid came from a group of four par­ties – Mar­quee ten­dered US $ 106 mil­lion for BCBG’s In­tel­lec­tual Prop­erty Rights and Global Brands of­fered US

$ 23 mil­lion for BCBG’s re­tail op­er­a­tions, e-com­merce site and in­ven­tory. The out­stand­ing US $ 36 mil­lion was cov­ered by Hilco Global, an Illi­nois-based fi­nan­cial ser­vices busi­ness and Bos­ton-based in­vest­ment firm Gor­don Broth­ers. BCBG filed for Chap­ter 11 bank­ruptcy pro­tec­tion on Fe­bru­ary 28, with more than US $ 460 mil­lion in debt and has closed 120 US stores that af­flicted a loss of US $ 10 mil­lion in 2016. Now, BCBG op­er­ates around 71 stand­alone lo­ca­tions as well as 276 in­store shops at re­tail­ers such as Bloom­ing­dale’s, Dil­lard’s, Lord & Tay­lor and Macy’s – all of which have been oper­at­ing prof­itably. The brand also has stores in Ja­pan, France and Canada that may face clo­sures if no cor­re­spond­ing deals are made in those coun­tries.

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