BCBG to be bailed out by Marquee Brands and and Global Brands Group
BCBG Max Azria Group, LLC and Marquee Brands have presented a restructuring plan in bankruptcy court that would allow the brand to keep running operations, staving off the retail death its competitors have succumbed to.
The comprehensive agreement was submitted to the United States Bankruptcy Court for the Southern District of New York, where BCBG is currently in Chapter 11 proceedings. Upon court approval, the parties expect changes to be made immediately.
Unlike the recent deal Bebe Stores Inc. entered into where all of the Bebe brand brick and mortar stores will close and operations will exclusively shift online and to licensing, BCBG's restructure will allow it to continue operating retail stores.
On the equity side of the agreement, Marquee has partnered with Global Brands Group Holding Limited. Global Brands is an affiliate of Li & Fung Ltd., an exporter who already operates some of BCBG's licenses.
The restructuring agreement gives Marquee intellectual property rights related to the BCBG brand. Global Brands will acquire certain assets associated with the BCBG business. It already has an interest in licenses for BCBG brands, which include Herve Leger by Max Azria and BCBGeneration.
Consumers can expect to see operations continue for BCBG's core business, both online and at retail. Global Brands will assume leadership of wholesale, retail and online operations. It will also lead marketing, sales and distribution of BCBG brands under the agreement.
Marquee also plans to increase BCBG's business to new product categories and distribution channels in new geographies.
"This is the best possible outcome for customers, vendors, business partners, and our employees who are the lifeblood of the Company. BCBG will remain a viable, creative and strong brand going forward across multiple platforms," said Marty Staff, Acting Interim Chief Executive Officer of BCBG Max Azria Group, LLC.
As BCBG and its family of brands get bailed out, founder Max Azria is watching from the distance outside of the industry as the new CEO of a bug zapping light startup, ZappLight. He is also an investor in the parent company, Clean Concept.
BCBG's restructuring deal with Marquee is slated to be completed by July 31, 2017.
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