BCBG Max Azria filed for Chapter 11 bankruptcy protection on Wednesday, according to Reuters. The California-based fashion house, which listed assets in the range of $100 million to $500 million and liabilities in the range of $500 million to $1 billion, is the latest casualty in the struggling U.S. retail sector, as shoppers continue to abandon malls in favor of shopping online. According to reports, BCBG has already informed mall owners of its plans to shutter most of its approximately 200 U.S. stores.
BCBG, which was founded by Tunisian fashion designer Max Azria in 1989 and is currently owned by investment firm Guggenheim Partners, has received a commitment of up to $45 million in debtor-in-possession financing that will be used for working capital and to ensure normal operations during the Chapter 11 process, the company said in a statement.
"The steps we are taking now, to address the shift incustomer shopping patterns and the growth of online shopping, will allow us to focus on our partner relationships, digital, ecommerce, selected retail locations, and wholesale and licensing arrangements," Marty Staff, acting interim chief executive of the company said in a statement.