BCBG Max Azria Files for Chapter 11 Bankruptcy
Women’s apparel retailer BCBG Max Azria Group LLC sought Chapter 11 protection Tuesday. The company said that its Chapter 11 case could take the form of a stand-alone restructuring, a sale or a merger. It hopes to complete the process in the next six months. In the meantime, stores will remain open — the retailer has lined up $45 million in new financing from existing lenders so it may purchase new inventory and fund the costs of the chapter 11 case.
Total Retail's Take: This is BCBG's third attempt in two years trying to rescue itself. The retailer, founded by designer Max Azria, laid off 123 employees and closed 120 stores nationwide. This Chapter 11 filing doesn't come as much of a surprise. As we've seen with so many brands as of late, BCBG cannot keep up with the consumer shift from brick-and-mortar to e-commerce and fast-fashion.