Consortium makes ‘stalking horse’ bid for upscale fashion retailer

BCBG Max Azria Group LLC is getting a shot at keeping its brand alive.



A consortium lead by brand licensor Marquee Brands LLC is preparing a stalking horse bid for BCBG Max Azria Group LLC. If successful, this move would allow the U.S. fashion house to exit bankruptcy, according to Reuters.According to sources in the report, Marquee has partnered with Global Brands Group Holding Limited, a spin-off of global exporter Li & Fung Ltd., which already has a licensing agreement for some of BCBG's brands. Liquidators Hilco Global and Gordon Brothers are also members of the consortium.



Other potential bidders include buyout firm Sycamore Partners and brand licensor Bluestar Alliance LLC, the sources said in the report.



According to sources in the report, a successful starting bid for BCBG must total at least $150 million, and a U.S. bankruptcy court judge must approve the final sale. This stalking horse bid would set a floor to ward off low offers among any other proposals in a bankruptcy auction. This event could be held as soon as this month.



The chain, which filed Chapter 11 in March, listed assets in the range of $100 million to $500 million, and liabilities in the range of $500 million to $1 billion. The retailer has already closed 120 stores as part of its restructuring efforts. BCBG currently operates 73 retail stores, and 276 partner shops. If the bid is accepted, it would allow the company to exit bankruptcy with a footprint of 15 to 20 stores, according to the report, which BCBG has neither commented on nor confirmed the report.



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