BCBG announces store closures in 2017

Last year, many retailers struggled with mall decline and declining retail sales. In 2017, BCBG Max Azria Group has succumbed to these obstacles and has announced store closures for later in the year.

The contemporary luxury brand has confirmed that it will close stores as part of a restructuring process. “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,” the company said in a statement, as reported by WWD. As consumer patterns have shifted mostly online, mobile and other e-commerce platforms; the physical store has become less of a necessity for most brands. BCBG seems to be no exception in this current economic climate.

While bankruptcy has not been announced or hinted at from the company, restructuring is typically a sign that the company many be struggling financially as well. Store closures are also usually a step towards bankruptcy. The Limited recently just filed for Chapter 11 after facing the same issues. Although BCBG’s plan to restructure may help with the the business, it may not come as a surprise to see the company headed in the same direction.