Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

BCBG looking to refinance debt

BCBG Max Azria, the contemporary womenswear label owned by the US fashion group of the same name, is reported to be looking to secure a $230m (£140m) loan to refinance a portion of its debt.

BCBG already has a $110m (£67m) loan which is due to be repaid in August and, if not refinanced, could impair the firm’s liquidity. The refinancing would extend repayment of the debt until 2015.

Credit rating agency Standard and Poor raised BCBG’s corporate credit rating to “B-minus” from “CCC-plus” suggesting that the company’s liquidity will improve after refinancing takes place.

Standard and Poor said: “Although revenue will likely weaken in fiscal 2011, operating performance and credit metrics should remain relatively stable in 2011, benefiting from higher operating margins as a result of better product mix and a gradually improving economy.”

BCBG is owned by Tunisian-born Max Azria. The label has 349 standalone stores and 229 concessions worldwide. In 1998, BCBG bought the French fashion house Hervé Léger.  

Hérve Léger has 15 standalones. In the UK, Hérve Léger has four wholesale accounts with Harrods, Selfridges, London designer indie Matches and etailer Net-a-Porter, while BCBG Max Azria is stocked in selected Harvey Nichols and House of Fraser stores.

Most recently, Azria bought the bankrupt German department store chain Karstadt with private investor Nicholas Berggruen in September 2010. He owns 20% of the 120-door chain.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.