BCBG Max Azria Group announced the company has taken the next step in the restructuring of its brands.
The company, which owns BCBGMAXAZRIA, said Wednesday it has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The company has obtained a commitment of $45 million from loan lenders in new financing and filed its plan of reorganization.
“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,” said Marty Staff, interim chief executive officer. “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.”
This newspaper previously reported 120 BCBG stores would close in the U.S., and the company just announced it will also close freestanding stores in Canada and consolidate its operations in Europe and Japan.
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The only store impacted in Ohio currently is the outlet store in Monroe. All other BCBG stores will remain open as now. The BCBG location at the Tanger Outlets in Jeffersonville closed in June, according to a spokesman for the outlet mall.
“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,” Staff said.
During the bankruptcy process, the company will continue to buy goods and sell products to its customer base. BCBG is just one of many retailers to announce store closures in 2017. The Limited shut down all brick-and-mortar locations, including local stores, and also filed for bankruptcy. Macy’s, Sears, Kmart and Ann Taylor will also cut select locations.
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