Pressured by the ever-growing online competition and a huge debt, BCBG Max Azria Group will execute a restructuring plan. It is unclear how many of the 570 stores worldwide, including 3 in the Benelux, will remain open.
Bankruptcy not part of the plans
The fashion label, founded by Tunisian designer Max Azria in 1989 has countless stars (like Kate Winslet, Victoria Beckham or Alicia Keys) as part of its clientele. However, it now faces a major restructuring, because it can no longer maintain to keep 570 stores open worlwide (including 175 in the United States) in a world with “growing online competition and changing consumer behaviour.”
“In order to remain viable, the company — like so many others in its industry — must realign its business to effectively compete in today’s shopping environment”, spokesperson Seth Lubove said. “BCBG is a world-class designer and producer of apparel, which with the necessary changes, should be able to be successful.”
What those “necessary changes” are, is not clear. The group did mention it would lower its retail footprint (it will close stores) and instead focus more on license deals, eCommerce and sales through other retailers. Despite its high debt, it does not see “bankruptcy as an imminent risk”. Over the past few months, BCBG (which has stores in Antwerp, Brussels and Luxembourg) already cut 123 jobs.
