Lubov Azria will not get a golden parachute from BCBG
Lubov Azria's request for a $7 million dollar severance package has been denied by the bankruptcy court overseeing BCBG's buyout.
Lubov Azria is the former chief creative officer for BCBG and wife of Max Azria. She was let go from her position in March and petitioned the bankruptcy court in June to recover her alleged lost wages and also award her a severance package. She claimed the release from her position was wrongful and sought a golden parachute of $7 million dollars from the bankrupt brand.
This week the bankruptcy court judge approved BCBG's restructuring plan and also denied Azria's claim. Azria's claim was converted to an unsecured claim which makes it a significantly lower priority in the grand scheme of debt that BCBG has to repay. She will be much farther down the line to collect than secured creditors who will be paid off first. It is unlikely she will see even a fraction of what she has asked for.
This is not the first time Azria has sued BCBG. She brought another substantive claim before the bankruptcy court that was based on an employment contract she alleged was violated when she was terminated. That time she asked the court for $6.7 million. The court denied that claim as well.
According to the new restructure, Global Brands and Marquee will pay $165 million to gain the intellectual property rights and operations for the BCBG brands. They will also manage the company's debt repayment, which includes $55 million dollars in loans to BCBG creditor Allerton Funding and $1.75 million to affiliate Guggenheim Partners.
Azria's golden parachute claim for $7 million will now go into a pool of $900,000 remaining cash that will be split up among the unsecured creditors seeking repayment from BCBG.
Copyright © 2023 FashionNetwork.com All rights reserved.