It’s always one of the first shows we cover at Mercedes-Benz Fashion Week in New York and I once met Max Azria backstage at Herve Leger, so it was troubling to hear that the BCBGMAXAZRIA line—one of three that Azria churns out for each season—is in financial trouble. Sure their looks may sometimes be more Bebe than we care for, but for the most part we still love the fun and flirty label.
The company is currently working to secure a new $230 million term loan to refinance a portion of its debt. BCBG already has a $110 million first-lien term loan coming due in August that, if not refinanced, could impair the firm’s liquidity. The refinancing would extend repayment on the debt until 2015.
In addition to BCBGMAXAZRIA and Max Azria’s eponymous line, BCBG bought French fashion house Hervé Léger in 1998, the Don Algodón chain of stores in Spain in 2005 and the Max Rave chain in 2006 (which closed earlier this year). Most recently, Azria teamed with private investor Nicholas Berggruen to buy the bankrupt German department store chain Karstadt in September. He owns 20 percent of the 120-door chain. So does Max just have too much on his plate these days? It remains to be seen, but we’re hoping we’ll have a BCBG show to attend come September!
Article Source: WWD
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