Global Brands Group Holding and Marquee have made a bid to acquire BCBG Max Azria Group for $23 million.
According to a public statement by the company published on the official website of the Hong Kong Exchange on June 9, Global Brands Group Holding agreed to enter into a conditional Asset Purchase Agreement with the BCBG brands to purchase certain inventory, retail store leases and other retail-related assets, wholesale and e-commerce operations.
In February, BCBG filed for Chapter 11 bankruptcy after struggling with a debt load of about $485 million. The agreement still needs to be approved by the Manhattan bankruptcy court.
Founded in 1989 by the Tunisian fashion designer Max Azria, BCBG has become a globally renowned womenswear fashion label that specializes in producing ready-to-wear and accessories for customers worldwide.
The brand, which is currently owned by the investment firm Guggenheim Partners, sells its products at local boutiques and major department stores as well as online e-commerce platforms.
The agreement would give Global Brands Group ownership of the operating asset of BCBG as well as the license of BCBG products. Marquee would get ownership over intellectual property assets.
Global Brands Group is part of the Fung Group, which manages licenses for dozens of companies including Calvin Klein, Under Armour and Juicy Couture and owns brands including Frye. Marquee Brands is a brand acquisition, licensing and development company, it owns British menswear brand Ben Sherman, surf line Body Glove and Bruno Magli, an Italian fashion line.
In 2015, BGBG expanded into the Chinese market through a partnership with VoyageOne, a provider of B2C “cross-border” e-commerce solutions and services, that helps foreign brands set up a presence in the country’s e-commerce market.
“This is the best possible outcome for customers, vendors, business partners, and our employees who are the lifeblood of the Company,” said Marty Staff, Acting Interim Chief Executive Officer of BCBG Max Azria Group in a statement. “BCBG will remain a viable, creative and strong brand going forward across multiple platforms.”
The agreement is expected to be finalized on or before July 31 2017.