Fashion group BCBG Max Azria said a unit to be owned by itself and Guggenheim Corporate Funding (GFC) has won the bidding for the G+G retail business.

The unit, Max Rave, submitted a bid of US$35m for the company, beating a rival offer from the Wet Seal fashion company. The winning bid was approved in the US Bankruptcy Court and is expected to be completed by 21 February.

GCF provided equity and loan commitments to Max in order to fund the purchase of the company, provide fresh inventory for stores and provide operating working capital for operations.

In addition, BCBG agreed to provide equity capital to Max Rave. Max Rave will initially be operated separately from BCBG but is expected to be merged into the group later this year.

G+G Retail operates more than 500 stores in the US and Puerto Rico under the names Rave, Rave Girl and G+G.

BCBG designs, develops, produces and markets complete collections of women's ready-to-wear clothing and accessories, and select categories for men.