As of Monday, February 9, 2015
The ailing BCBG Max Azria Group, which has a mountain of debt, received a $135 million infusion of cash from Guggenheim Partners and other affiliated investors.
The investment revamps and significantly restructures the Los Angeles company’s debt and strengthens its balance sheet, the company said.
Guggenheim Partners has been a major financial backer of the brand established in 1989 by Max Azria. It is understood that Guggenheim Partners has in the past held about $475 million of $685 million of BCBG debt, with $230 million on a first-lien term loan and $245 million on a second-lien term loan.
Azria remains chief executive officer and his wife, Lubov Azria, remains chief creative officer. “We are very excited about our brands, business and our future prospects,” Max Azria said in a statement. “We are gratified that investors have given this vote of confidence to our business and our strategic plans.”
In January, the BCBGMaxAzria store at the Hollywood & Highland shopping center in Los Angeles was shuttered after being at that location for a little more than 10 years.
The brands that make up the company are BCBGMaxAzria, Hervè Leger by Max Azria and BCBGeneration.