Marquee Brands and Global Brands Group have entered into an agreement to purchase BCBG Max Azria Group, which filed for bankruptcy on March 1st.
Under the agreement, Marquee and Global Brands intend to continue to operate a substantial majority of BCBG’s core business as a going concern. Marquee will acquire the intellectual property for $106 million in cash, and Global Brands will acquire existing inventory and certain assets related to the operation of the business for $23 million in cash, according to court documents.
Marquee will bring its global brand management know-how to growing the BCBG brands into new product categories, distribution channels and geographies. Global Brands will market, promote, sell and distribute the products and manage the wholesale operations, up to 22 retail stores and e-commerce.
The proposal also includes a royalty-sharing agreement that provides BCBG lenders with an interest in Marquee’s use of the purchased intellectual property, according to The Wall Street Journal.
“This is the best possible outcome for customers, vendors, business partners, and our employees who are the lifeblood of the Company. BCBG will remain a viable, creative and strong brand going forward across multiple platforms,” said Marty Staff, acting interim chief executive officer of BCBG Max Azria Group, LLC, in a statement.
The transaction, which is expected to close on July 31st, is dependent on approval by the U.S. Bankruptcy Court.
This latest development follows the sale of BCBG’s Lola domain last week for $550,000 in cash.