Earlier this month, BCBG Max Azria Group announced the closure of nearly 120 stores, setting off rumors that it would soon join the growing list of mall tenants filing for bankruptcy. Now comes a report claiming that this filing could happen as soon as next week.
This is according to Reuters, whose sources say that BCBG is working with financial and legal advisors to prep the bankruptcy documents.
The retailer, which is owned by investment firm Guggenheim Partners, did not provide comment on the bankruptcy rumors.
Reuters reports that BCBG has previously told investors it would like to avoid bankruptcy by cutting its $486 million in debt.
An alternative has apparently not materialized, the sources note, adding that some of the company’s assets could eventually be sold to others through the process.
The bankruptcy plan comes just weeks after BCBG announced it would shutter 120 stores — about one-third of its U.S. stores — that are either unprofitable or have untenable lease agreements in coming weeks with some locations already hosting close-out sales.
These closing affect the company’s BCBGMaxazria and BCBGGeneration locations, but not the retailer’s store-within-a-store concept housed in various Macy’s department stores.
Source: Consumer Reviews