BCBG Max Azria secured permission to seek $15 million in financing.
The retailer, which filed for bankruptcy on Feb. 28, will use the money to fund the company through its bankruptcy proceedings and to reduce its debt. It owes creditors $459 million, according to Bloomberg.
The mall staple is soliciting bids to sell its assets at an auction in May.
Problems for the women’s wear label went public right after the New Year with reports that it would be closing stores in an effort to restructure debt. Then the company filed for Chapter 11 on Feb. 28.
The bankruptcy filing will help BCBG to reposition itself to adapt to new retail and consumer trends, according to a statement. BCBG hopes to reposition its focus on partner relationships, digital, e-commerce, selected retail locations and wholesale and licensing arrangements.
The company restructured its debt in 2015, which reportedly amounted to $475 million in 2013, and received a cash infusion of $135 million from investors. In 2016, Marty Staff was brought in as interim chief executive to help turn the company around.
BCBG was launched in 1989 by Max Azria. The label has been a celebrity favorite with fans, including Angelina Jolie, Rachel Bilson and Eva Mendes.