US Bankruptcy Court approves bids for BCBG
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.