Laboring under debt—and a lack of store traffic—the company plans to close stores and restructure.
BCBG has more than 570 stores worldwide, which Lubove said was too much retail space.
“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,” he said.
The latest maneuvering follows more than 100 layoffs in September. 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.
Sources close to BCBG told Bloomberg the retailer is in a cash crunch, but the business is not for sale or in danger of bankruptcy.
BCBG has reportedly hired AlixPartners LP to help restructure its debt.
Max Azria founded BCBG in 1989. Max’s wife, Lubov Azria, joined as the chief creative officer in 1991 and become creative director in 1996. Pieces from the brand’s runway collection have been seen on Angelina Jolie, Rachel Bilson and Eva Mendes.