The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Fashion house BCBG Max Azria got court permission to borrow $15 million to help carry it through a bankruptcy process that will culminate in an asset auction.
US Bankruptcy Judge Shelley C. Chapman said at a hearing Thursday in Manhattan that she would approve the initial debtor-in-possession financing. Vernon, California-based BCBG will to return to her court later to seek an additional $30 million.
The company needs the money so it can continue selling inventory to pay creditors, who are owed $459 million, according to a court filing. BCBG said it’s soliciting bids for the sale of “some or all” of its assets at a May auction. Chapman must approve any sale procedures.
The company filed for Chapter 11 protection on Feb. 28, blaming “adverse” trends including competition from online merchants and a consumer shift away from branded clothing. Many U.S. apparel retailers have been struggling to survive in the new shopping environment. Wet Seal filed for bankruptcy last month to liquidate. American Apparel entered in Chapter 11 November and sold assets to Gildan Activewear Inc.
BCBG will use $5 million of the financing to reduce debt and the other $10 million to fund operations. Chapman scheduled a final hearing on the loan for March 28.
Canada, France and Ireland are among the countries working with home-grown fashion talent to create uniforms for their teams at this summer’s Olympic Games. For these small labels, it’s an unprecedented opportunity to capitalise on one of sports’ largest events.
The online fashion retailer plans to update China’s securities regulator on the change of the initial public offering venue and file with the London Stock Exchange as soon as this month, a person with knowledge of the matter said.
The company, under siege from Arkhouse Management Co. and Brigade Capital Management, doesn’t need the activists when it can be its own, writes Andrea Felsted.
As the German sportswear giant taps surging demand for its Samba and Gazelle sneakers, it’s also taking steps to spread its bets ahead of peak interest.