BCBG Max Azria Group Inc. is in talks with Guggenheim Partners LLC for a deal that would cut the design house’s debt, but relinquish some creative control. Founded in 1989, BCBG’s flirty dresses have been seen on celebrities from Selena Gomez to Kim Kardashian. But after a series of failed attempts to expand, the company found itself about $685 million in debt.
Azria plans to stay on in the company in an advisory role. Guggenheim wants to form an investment in BCBG through a new class of preferred stock.
The debt problem brings up another dilemma facing older fashion brands: the need to modernize in a more global, tech savvy world. In a changing business environment, creative geniuses sometimes lack the skills needed to push their companies in a more modern direction. His departure, though, could risk damaging the brand.
The terms haven’t been completed, and Azria might have other options to consider. But, an agreement with Guggenheim could be reached in the coming weeks.
– Tanisha Wallis
Source: The Wall Street JournalSee the Top Ten Summer 2016 Trends for Women Over 40