Fashion House BCBG Max Azria Files For Bankruptcy

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Back in January, DM Fashion Book reported that BCBG Max Azria will shutter stores and restructure as “online shift”. The fashion house plans to reduce its focus on brick-and-mortar shops, concentrating instead on licensing, e-Commerce and selling through other retailers (see it here).

The once iconic fashion house, which listed assets in the range of $100 million to $500 million and liabilities in the range of $500 million to $1 billion, is the latest brand to file for bankruptcy.

Today, it was announced that “BCBG Max Azria Group Inc. filed for bankruptcy as it makes a third attempt in two years to rescue the glitzy fashion house founded by designer Max Azria,” according to Yahoo Finance.

“Like many other apparel and retail companies, BCBG has fallen victim in recent years to adverse macro-trends, including a general shift away from brick-and-mortar to online retail channels, a shift in consumer demographics away from branded apparel,” Chief Restructuring Officer Holly Felder Etlin.

It’s being reported that “Some of the company’s lenders have agreed to loan the company $45 million to help it get through bankruptcy. That loan must be approved by the judge overseeing the case. The company owes lenders about $459 million.”

The brand was founded in 1989, in Los Angeles by Tunisian fashion designer Max Azria. The brand’s first boutique was opened in L.A. in 1992. The chain has operated more than 570 boutiques worldwide, including more than 175 in the U.S.

Stay tuned as this story develops!

 

Photos Credit:  Yannis Vlamos / Indigital.tv

Source: Yahoo Finance

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Donovan

Donovan is the CEO and Editor-In-Chief of www.dmfashionbook.com. For all general inquiries please email don@dmfashionbook.com Donovan has a BA in Journalism & Media Studies from the prestigious Rutgers University. He's currently studying entertainment and fashion law.