BCBG is now looking for a partner. The brand has been trying to overcome its "hundreds of millions" of dollars of debt. Some sources are even saying that Max Azria, the founder of the BCBG, is on the verge of losing control of the label.
The main problem of the debt seems to be the "junk-rated debt load", which grew following an ill-fated acquisition of a group of mall-based teen stores in 2006. Many sources say that it is possible that investors will seek a controlling stake to keep Azria from spending more of the company's money.
"You'd have to put [Azria] in a cage to do a deal with him," said one investment banker on Azria's past situations. "He's a non-stop deal guy. He makes some good deals, but he's made plenty of bad ones, too."
Even though Azria has made a success with the collaboration of Miley Cyrus and BCBG in Wal-Mart, he has made too many other costly mistakes, including failing to complete a public offering which the company announced plans for right before the economy tanked in 2006.
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