Brand licensor Marquee Brands LLC is leading a consortium that's preparing a bid for BCBG Max Azria Group LLC, which would allow the U.S. fashion house to exit bankruptcy with 15 to 20 stores, according to a report published in Business of Fashion today. BCBG, which is owned by investment firm Guggenheim Partners, filed for bankruptcy in March after it fell behind in rent payments and struggled with a debt load of about $485 million. A bankruptcy auction is scheduled for later this month. Bids for BCBG should start at $150 million, according to one source.
Total Retail’s Take: The consortium preparing the bid for BCBG may be just what the doctor ordered. It includes a partnership between Marquee, Global Brands Group Holding Limited (a company spun off from exporter Li & Fung Ltd. that already has a licensing agreement with many BCBG brands), licensing company Gordon Brothers and liquidator Hilco Global. Together, they're reportedly planning to make a "stalking horse" bid for BCBG that would set the floor for any other proposals in the upcoming bankruptcy auction. This move could spare BCBG the fate of other bankrupt retailers, which have completely gone out of business and sold their brands, such as The Limited Stores, American Apparel and Wet Seal.