A bidding war is breaking out over the assets of bankrupt teen apparel chain G+G Retail Group, with BCBG MaxAzria Group submitting an offer to rival one already put forward last week by specialty retailer Wet Seal.

G+G filed for Chapter 11 bankruptcy on 25 January, and said it had struck a purchase agreement to be bought by Wet Seal for US$15.2m.

But in a new court filing, BCBG said it would pay $15.2 million in cash, pay G+G's unsecured creditors $22 million over five years, provide more than $20 million of fresh inventory and rehire more than half of the retailer's terminated employees.

G+G operates 566 stores in the US and Puerto Rico.