US-based women's fashion retail chain BCBG Max Azria has filed for bankruptcy, a move that will see the closure of all its standalone stores located in Canada.
The company said it is seeking protection from creditors in the North America and plans to consolidate its operations in Europe and Japan.
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As part of its next step in the restructuring of its brands and operations, BCBG filed voluntary petitions for reorganisation under Chapter 11 of the US Bankruptcy Code.
The company has obtained $45m in new financing to effectuate its reorganisation efforts.
BCBG Max Azria Group acting interim CEO Marty Staff said: “The steps we are taking now, to address the shift in customer shopping patterns and the growth of online shopping, will allow us to focus on our partner relationships, digital, ecommerce, selected retail locations, and wholesale and licensing arrangements.
“The chapter 11 filing will further aid the implementation of these steps and overall strategy while we explore opportunities to recapitalise the company and profitably expand our international footprint.”
BCBG’s decision to restructure is intended to facilitate the success of its brands through a sale, merger or similar transaction of the company or its assets.
The company’s Canadian affiliate is separately filing for voluntary reorganisation proceedings under the country’s Bankruptcy and Insolvency Act.
Earlier this month, the company announced the closure of 120 retail stores as part of its restructuring efforts.
The stores will remain open during the reorganisation process, which is slated for completion within six months.
