BCBG Max Azria faces financial struggles in 2017

BCBG Max Azria is the latest in a list of retailers that have succumbed to financial struggles. Recently, the company has considered downsizing and shutting down most of its locations this year.

The fashion house has about 200 operating stores currently that are set to close. According to Reuters, the company has already reached out to mall owners about shuttering its flagships. Publicly, BCBG Max Azria has not made any statements about filing for bankruptcy. As the company has a debt of 485 million dollars according to the publication, it’s not unlikely that Chapter 11 bankruptcy is in the retailer’s future. If the bankruptcy is filed, BCBG may be shuttering its 200 U.S. locations. The company also has over 550 locations globally that will be affected.

Whether or not the company will find a suitable buyer or will be acquired into another brand remains to be seen. There are currently no details on how much BCBG could be bought for and what will happen to its remaining stores. Although the company may file for bankruptcy, this could mean a new plan of restructuring for the retailer. Other retailers including The Limited and Wet Seal have also struggled recently when it comes to financial issues in the retail market. It seems that even luxury fashion house such as BCBG are no exception to the current economic climate.