BCBG Max Azria Group Inc tests the patience of its vendors and creditors

The large fashion conglomerate with interests ranging from mass to luxury now tries to refinance its debt.  Even though some huge loans were refinanced last summer (BCBG last August refinanced a $460m asset-based loan through 2014), the company still needs to improve liquidity. Recently the fashion house told creditors BCBG had “suspended” all payments, pending completion of new financing arrangements. According to various sources, BCBG has been trying to complete a deal to secure a new $230m term loan to refinance a portion of its debt. The company plans to complete the refinancing by June14. Aworsening cash crunch is a result of a series of deals the company closed starting from 2006 and failed IPO plans.  Now the company has over 20 brands in its portfolio, including French fashion house Hervé Léger, Spanish chain Don Algodón and French retail chain Alain Manoukian.

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