BCBG Plans to Close Stores, Concentrate on Digital
BCBG Max Azria Group Inc. is planning to close stores and restructure as the company deals with a debt burden. Bloomberg reports that BCBG will reduce its focus on brick-and-mortar and, instead, focus on e-commerce and selling through other retailers. The fashion retailer operates more than 570 stores worldwide and more than 175 in the U.S. alone. BCBG spokesperson Seth Lubove said this is too large of a physical footprint. “In order to remain viable, the company — like so many others in its industry — must realign its business to effectively compete in today’s shopping environment.”
Total Retail’s Take: In recent months, BCBG has laid off more than 100 employees and hired AlixPartners LP to help restructure its debt load, according to sources close to the situation. The continuing consumer shift to digital has taken its toll on retailers as of late, and BCBG is the latest victim.