BCBG Max Azria Group Inc. may be taking a number and joining the line of retailers and fashion brands cracking under the weight of mounting debt and an overwhelming consumer shift to online.
The company plans to lessen its focus on brick-and-mortar stores and channel its resources toward licensing, e-commerce and selling through other retailers, Bloomberg reports.
The maker of form-fitting dresses and trendy fashion footwear and accessories was founded by designer Max Azria in 1989. Its wares have been seen on Miley Cyrus, Alicia Keys, Halle Berry, Victoria Beckham and other celebrities.
But similar to many retailers over the past year, serving as a teen staple (Wet Seal, PacSun, American Apparel, Aéropostale) and having a list of celebrity clients hasn’t been enough to navigate an overwhelmingly turbulent retail landscape.
Over the past few months, Vernon, Calif.-based BCBG has laid off more than 100 employees as it seeks to stay afloat.
BCBG has hired AlixPartners LP to help restructure its debt load, ideally while staying out of bankruptcy court, according to Bloomberg.
If it’s any consolation, teen mall retailers PacSun and Aéropostale were among the firms to seek Chapter 11 protection in 2016 and successfully emerge from the process with a more rational store fleet and a new lease on life.
BCBG has reportedly informed mall owners of its plans to shutter most of its U.S. stores. The company has more than 570 retail boutiques worldwide and 175 locations in the U.S.