The $1bn potential sale of struggling fashion retailer BCBG Max Azria is expected to attract private equity interest, it is understood.
The LA-based business is being advised by The Blackstone Group according to the FT.
BCBG has has trouble securing loans and refinance its debts in recent months following a continued slump in its mass-market business in the wake of the financial crisis.
The company was judged to be in danger of breaching its financial covenants by rating agency Standard & Poor’s last year, specifically over a $230m loan held by Guggenheim Partners.
Founder, CEO and chairman Max Azria had previously explored both IPO and sale options for the company, the FT added.
Earlier this month it emerged struggling British fashion retailer Republic could be bought by founder Carl Brewins alongside a private equity firm.
Better Capital, Apollo Global Management and Carl Brewins, who started the chain as a market stall almost thirty years ago, were all interested in the business according to Retail Week.
Republic, which fell into administration two weeks ago, is currently owned by private buyout specialist TPG Capital, which bought the retailer in a £300m deal in 2010.
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