BCBG is said to be working on securing a $230 million loan to help pay off its debts. As a result, sources tell WWD, some bills to creditors and vendors have gone unpaid since February. One source said BCBG told the parties it owes money too it has “suspended” all payments barring the completion of its new loan agreement. Though this deal will reportedly be done by June 14, BCBG has been unclear about when and how much of its bills it will then pay. Last August, BCBG refinanced a $460 million loan; the $230 million one the company waits on now “is critical to the ongoing viability of the company,” Moody’s Investors Service says.
BCBG, fall 2011.