Financial problems aside, it seems the BCBG Max Azria name still holds sway with consumers.
The company petitioned a New York bankruptcy court Wednesday to approve a licensing agreement with GBG USA.
The agreement would cover all regions worldwide, except the Republic of Korea, and would span the manufacture, marketing and distribution of shoes, accessories, jewelry and home furnishings under the BCBG Max Azria and BCBGeneration labels. The license would also cover footwear for the BCBG Paris brand, covering Spring/Summer 2017 and Fall 2017 and terminating on Feb. 3, 2018.
If the agreement is approved by the court during the April 27 hearing, GBG guarantees a minimum of $2 million in royalties, payable at signing. It will also pay BCBG 8 percent royalties of net sales on regular goods, 6 percent on off-price merchandise and 5 percent on home products.
BCBG filed for bankruptcy in February after suffering retail losses culminating in a 20 percent decline in brick-and-mortar sales, which represented 71 percent of revenue. At the same time, the company announced it would close all stores to focus on e-commerce, partner relationships, wholesale and licensing.
GBG USA licenses a slate of brands, including Calvin Klein, Under Armour, Frye, Cole Haan and Kenneth Cole.
BCBG is the latest company to struggle at retail only to find its lifeline through its intellectual property. Other examples include Boohoo’s purchase of the Nasty Gal, Gildan Activewear acquisition of the American Apparel brand and Dick’s Sporting Goods scooping up the Sports Authority name.