LOS ANGELES, March 1, 2017 /PRNewswire/ -- BCBG Max Azria Group, LLC ("BCBG" or the "Company") today announced that the Company and certain of its affiliates have taken the next step in the restructuring of its brands and operations by filing voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. In order to effectuate its reorganization efforts, the Company has obtained a commitment of $45 million in new financing and also filed a chapter 11 plan of reorganization. The restructuring is intended to facilitate the continued success of these iconic brands through a sale, merger or similar transaction of the Company or its assets, including its intellectual property, or a standalone restructuring, all as contemplated in the chapter 11 plan filed today. The Company's Canadian affiliate is commencing a separate filing for voluntary reorganization proceedings under Canada's Bankruptcy and Insolvency Act.
Additional information can be found at https://www.donlinrecano.com/bcbg.
As previously disclosed, the Company is repositioning itself for the future with a focus on partner relationships, digital, ecommerce, selected retail locations, and wholesale and licensing arrangements. The Company expects to complete its reorganization within six months. Stores will remain open during this process. Like many other pioneering apparel businesses, BCBG is adapting to fundamental changes in the industry, including how customers shop.
"BCBG is an iconic brand that launched the contemporary sector over 28 years ago," said Marty Staff, Acting Interim Chief Executive Officer of BCBG Max Azria Group, LLC. "The steps we are taking now, to address the shift in customer shopping patterns and the growth of online shopping, will allow us to focus on our partner relationships, digital, ecommerce, selected retail locations, and wholesale and licensing arrangements. The chapter 11 filing will further aid the implementation of these steps and overall strategy while we explore opportunities to recapitalize the Company and profitably expand our international footprint." Earlier this month, the Company disclosed the closure of 120 retail stores as part of its restructuring efforts. The Company is also taking steps to close its freestanding stores in Canada, and consolidate its operations in Europe and Japan.
The Company received commitments from its existing asset-based and term loan lenders to provide financing during the course of the Chapter 11 process. Certain of the term loan lenders have committed to provide new financing of up to $45 million. The DIP financing will be used for ordinary working capital purposes and to ensure normal operations during the Chapter 11 process, allowing the Company to address its balance sheet and restructure operations.
"We expect to maintain the personalized level of customer service to our customers at each of our in-store boutiques, stand-alone retail stores, and online platform throughout this process," said Mr. Staff. "BCBG will continue to work with its partners and other wholesale and licensing arrangements to strengthen our brands to meet customers' tastes and shopping styles."
In conjunction with the petitions filed on February 28, in the United States Bankruptcy Court for the Southern District of New York, BCBG filed a series of motions that, pending Court approval, will allow the Company to operate its business throughout the process. The first day motions will allow the Company to continue to buy goods and sell its contemporary clothing and accessories to its customer base.
Staff added, "We are grateful for the continued support of our customers, vendors, business partners, and our dedicated employees, who are the lifeblood of the Company."
BCBG Max Azria Group, LLC is being advised by AlixPartners, LLP and Jefferies LLC as its restructuring advisors, and by Kirkland & Ellis LLP as its legal advisor.
About BCBG Max Azria Group, LLC
BCBG Max Azria Group began with a single idea – to create a beautiful dress. Founded in 1989, BCBG was named for the French phrase "bon chic, bon genre," a Parisian slang meaning "good style, good attitude." The brand embodies a true combination of European sophistication and American spirit. The BCBG Max Azria label is sold online, in freestanding boutiques and partner shops at top department stores across the globe.
SOURCE BCBG Max Azria Group, LLC