Women’s clothing retailer BCBG Max Azria Group LLC announced bankruptcy deals worth $165 million to sell off its core businesses, which would live on as a going concern, the Wall Street Journal reported today. Marty Staff, BCBG’s interim acting chief executive officer, said that the proposed transactions were “the best possible outcome for customers, vendors, business partners and our employees who are the lifeblood of the company.” Marquee Brands LLC and Global Brands Group Holding Ltd. emerged as willing purchasers after a marketing process in which nearly 60 interested financial and strategic buyers signed confidentiality agreements to assess the value of the retailer’s assets. Subject to bankruptcy court approval, Marquee would buy BCBG’s intellectual property assets for $106 million in cash, while Global Brands would pay $23 million cash to operate wholesale and e-commerce operations and up to 22 standalone store locations. The proposal also includes a royalty-sharing agreement that provides BCBG lenders with an interest in Marquee’s use of the purchased intellectual property. The transactions’ implied value is roughly $165 million, according to bankruptcy documents.
