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BCBG Wins G+G

NEW YORK CITY-After teen-girl retailer Wet Seal announces that its $15.2-million bid for G+G Retail Inc. is denied, BCBG's bid is approved.

By Dana Dubriwny | Updated on February 16, 2006

NEW YORK CITY-BCBG Max Azria Group Inc. says that Max Rave, LLC, an entity to be owned by BCBG and Guggenheim Corporate Funding LLC (GCF), has succeeded in its $35-million cash bid for the assets of G+G Retail Inc. The winning bid of was approved Wednesday in the US Bankruptcy Court. The purchase transaction is expected to be completed on or before Feb. 21.Hours prior to the annoucement, teen-girl retailer Wet Seal said its $15.2-million bid was not enough to purchase the assets of G+G Retail Inc. Primarily found in shopping malls, G+G operates more than 550 stores found in some 41 states in the US as well as in the Caribbean. Citing disappointing holiday sales in 2005, the company filed for Chapter 11 bankruptcy protection on Jan. 25. At the time, the company said it had struck a purchase agreement to be acquired by Wet Seal.

However, following the $15.2-million bid made by Wet Seal, BCBG countered offered, and requested that a US bankruptcy court deny Wet Seal’s bid. In turn, BCBG pledged to pay $15.2 million in cash for G+G as well as $22 million to the company’s unsecured creditors over five years. According to court documents, BCBG offered to also provide more than $20 million of fresh inventory, and rehire more than half of the retailer’s terminated employees.

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