Fashion retailer BCBG Max Azria Group has reached an agreement on a comprehensive restructuring that contemplates the sale of substantially all of the assets of the business through a Chapter 11 plan to Marquee Brands and Global Brands Group Holding Limited.

Consummation of the transactions with Marquee and Global Brands is expected to immediately follow approval by the US Bankruptcy Court for the Southern District of New York with an expected closing date no later than 31 July.

Marquee and Global Brands intend to continue to operate a substantial majority of BCBG's core businesses as a going concern.

BCBG filed for Chapter 11 bankruptcy protection in February.

BCBG Max Azria files for bankruptcy

Now, US private equity-backed Marquee will acquire the intellectual property associated with the BCBG brand, while Global Brands will acquire certain of the assets associated with the operation of the BCBG business.

Meanwhile, Marquee will leverage its global brand management platform to grow BCBG and related brands into new product categories, distribution channels and geographies.

Global Brands will market, promote, sell and distribute products bearing the BCBG brands, as well as operate the wholesale operations, select retail stores and e-commerce platform of the BCBG brands.

"This is the best possible outcome for customers, vendors, business partners, and our employees who are the lifeblood of the company," says Marty Staff, acting interim-CEO of BCBG Max Azria Group. "BCBG will remain a viable, creative and strong brand going forward across multiple platforms."

The news follows a petition filed in April by BCBG with a New York bankruptcy court to approve a licensing agreement with a subsidiary of Li & Fung spin-off Global Brands Group.

Global Brands subsidiary could sign BCBG deal