BCBG wins employment lawsuit against Max and Lubov Azria
BCBG on Monday won a contract dispute with founder Lubov Azria. The lawsuit came weeks after BCBG filed for bankruptcy.
According to the suit, the Azrias claimed that Lubov was illegally terminated as Chief Creative Officer and Director due to her employment contract being part of an out-of-court deal with Guggenheim Partners.
The Azrias signed a $135 million deal with Guggenheim Partners in 2015 that changed the BCBG equity structure. Max and Lubov argued that her contract must be read with the restructure agreement with Guggenheim.
A bankruptcy judge on Monday ruled in favor of BCBG’s argument that Lubov’s employment contract was not integrated with the 2015 agreement. The contract also had an agreement provision that superseded the 2015 deal.
Amidst the lawsuit, BCBG is restructuring its business to operate as an e-commerce entity. The company is also currently awaiting the decision from a New York bankruptcy judge on its licensing agreement with Global Brands Group. If the deal is approved, BCBG Max Azria and BCBGeneration footwear, accessories, jewelry and home furnishings will be manufactured, marketed and distributed by Global Brands.
The agreement also includes the BCBG Paris footwear collection for the spring and fall 2017 collections.
Copyright © 2023 FashionNetwork.com All rights reserved.