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Retailer BCBG gets buyout offer from Marquee and Global Brands

Buyout deal would allow 22 stores to remain open
June 19, 2017 12:30PM

BCBG MaxAzria store, Founder Max Azria (Getty Images)

BCBG Max Azria received a $165 million buyout bid from a consortium led by Marquee Brands and Global Brands Group Holding Ltd., the company announced.

If it closes, the deal would result in more than 20 of the brand’s retail stores remaining open. The buyout is slated to close by July 31 pending approval by the United States Bankruptcy Court for the Southern District of New York.

Marquee, which owns Ben Sherman, Body Glove and Bruno Magli, would pay about $106 million for the Vernon-based retailer’s intellectual property, while Global Brands would dish out $23 million for inventory, the right to keep as many as 22 stores and operate BCBG’s e-commerce site, California Apparel News reported. Global Brands’ portfolio includes Jones New York and Juicy Couture.

Since filing for bankruptcy protection in February, BCBG has closed 120 stores in the U.S. The retailer racked up $10 million in losses last year but still operates 71 BCBG stores and 276 stores within stores.

The retail chain, which is primarily owned by Guggenheim Partners and affiliates, has a debt load of more than $485 million. [CAN]Subrina Hudson