Fashion company, BCBG founded by designer Max Azria, has announced a plan to restructure the company, which will reportedly involve store closures and a shifted focus to e-commerce, licensing and shop-in-shops. The retailer has struggled recently with a debt burden and a shift of many consumers online. The California-based company has laid off 123 people in recent months according to a filing with the state’s Employment Development Department.
Seth Lubove, a spokesman for BCBG at Sitrick & Co., told Bloomberg via email that the brand has “too large a physical retail footprint.”
“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.”
According to the article, BCBG is facing a “cash crunch” but it doesn’t see bankruptcy as an imminent risk. “Though the company is exploring its options, there’s no attempt underway to sell the business,” an anonymous source reported.