Fashion house BCBG Max Azria prepares for bankruptcy

New York

BCBG Max Azria Group LLC, whose form-fitting party dresses have been worn by celebrities Selena Gomez, Drew Barrymore and others, is making preparations to file for bankruptcy as soon as next week, people familiar with the matter said last Friday. The fashion house is the latest casualty in the struggling US retail sector, as shoppers abandon malls in favour of internet shopping.

BCBG has already informed mall owners of its plans to shutter most of its approximately 200 US stores.