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BCBG has lost its footing as a cohesive fashion voice, even if the turn ward wholesale pivot succeeds.
BCBG said on February 28 that online shopping and changing consumer tastes were responsible for its decline, by way of explaining its Chapter 11 protection filings has if you are going to remain viable, the company like so many others in its industry must realign its business to effectively compete in today’s shopping environment.
Experts says that while there’re similarities between most of these brands, there’re also notable differences.
Companies including The Limited, Wet Seal and American Apparel have endured similar problems. Complexities BCBG is facing in the marketplace are not singular. Now regarding the aforementioned fact… Not simply one. Max Azria, and whoever he surrounded himself with, had a decent eye. It wasn’t and hereupon all of a sudden your quality is s -.
For 570 stores, it was problems that created a disconnect between its product and its pricing. Basu also says that the fast fashion retail model has impacted companies like BCBG. Nonetheless, in June 2016, Women’s Wear Daily described the BCBG Max Azria Resort 2017 runway collection as fresh, colorful, distinctive and easy to wear. Max Azria, the Tunisian fashion designer who in 1989 founded BCBG, had been on paid leave since July 2016, and The Wall Street Journal reported that he hadn’t been seen in the office in weeks.
That employees were complaining about the direction of the business; and that staff was being asked to work fewer hours, Around the time that BCBG elected not to show at September’s Fashion Week, California Apparel News reported that the company was laying off 123 people. That same month, his daughter Joyce, the creative director of lowercost line BCBGGeneration, left to start her own brand. Certainly, BCBGMAXAZRIAGROUP had been floundering for years. Its portfolio, that includes BCBGMaxAzria, Hervé Léger by Max Azria and BCBGeneration, struggled to connect with customers, and subsequently the firm found itself with an outsized debt which by 2013 had risen to $ 685 million. Longtime investor Guggenheim Partners LLC was responsible for $ 475 that million. Bahulkar says that introducing hundreds of new products across multiple brands targeting a wide array of women while simultaneously focusing on wholesale and retail across more than 40 countries could not are easy to scale, both creatively and organizationally.
In doing so you are suddenly taking on lots of complexity without enough scale behind any given segment or ‘subbrand’ to make it sustainable, he said, Undoubtedly it’s very, very tempting to continue to do what you’re doing.
You can’t be drunk and still be able to call that limit, especially when you have investment capital.
By way of example, Peterson points to American Apparel, Banana Republic and The Limited. These stores didn’t have an ideal enough idea, or their idea was limited, and they’ve been drunk on gains, he said. On p of this, like Max Azria was, So if you’re the founder, you’re getting richer and richer nearly any time you open another store. Bahulkar says that BCBG was also quite behind the curve when it came to creating a personalized online shopping experience, and only started making meaningful investments to rectify the real issue in the last 12 to 18 months.