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(Reuters) – BCBG Max Azria Group LLC, whose form-fitting affair dresses accept been beat by celebrities Selena Gomez, Drew Barrymore and others, is authoritative affairs to book for defalcation as anon as aing week, bodies accustomed with the amount said on Friday.

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Guests access for the BCBG Max Azria’s Fall/Winter 2016 accumulating appearance appearance during New York Appearance Anniversary in New York, February 11, 2016. REUTERS/Brendan McDermid

The appearance abode is the latest blow in the disturbing U.S. retail sector, as shoppers carelessness malls in favor of internet shopping. BCBG has already a capital owners of its affairs to bang best of its about 200 U.S. stores.

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BCBG is alive with its banking and acknowledged admiral to adapt the defalcation filing, the bodies said, allurement not to be articular because the affairs are confidential. It is accessible that some companies, including cast licensing firms, may seek to buy BCBG’s assets in bankruptcy, the bodies added.

BCBG beneath comment. Its owner, advance close Guggenheim Partners, did not acknowledge to requests for comment.

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Competing specialty retailers, including The Limited and American Apparel, accept additionally filed for defalcation in contempo months and are closing bottomward their stores.

In a alarm with landlords in January, a recording of which was heard by Reuters, BCBG said it adopted an another to defalcation as it looked to carve its anchored debt amount of $485 million.

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However, BCBG is abaft on its rent, and defalcation would accept the advantage of careful it from acknowledged activity by landlords, which accept been put beneath burden by a beachcomber of retail bankruptcies and shuttered stores.

The accessible defalcation is a abatement from adroitness for BCBG, an acronym for the French byword “bon chic, bon genre,” which agency acceptable style, acceptable attitude, and originally referred to stylish, flush Parisians. Reuters appear in 2013 that it was exploring a abeyant auction that could accept fetched as abundant as $1 billion.

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In 2015, BCBG restructured its debt and accustomed a $135 actor banknote beverage from investors including affiliates of Guggenheim.

BCBG was founded by Tunisian appearance artist Max Azria in 1989 and grew through its retail shops and administration in administration food including Saks Fifth Avenue and Bloomingdale’s. It additionally acquired Herve Leger, maker of skin-tight dresses, and started a lower-cost band alleged BCBGeneration.

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Azria is no best at the captain of the company.

In the alarm with landlords aftermost month, one of BCBG’s admiral said the company’s retail abundance business beneath by 20 percent over the accomplished three years. The aggregation appear circumscribed net sales of aloof over $600 actor in the 12 months to December, according to the call.

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Retail accounted for 71 percent of its revenue, while broad accounted for 18 percent, according to the call. The allotment allotment for licensing and e-commerce sales were in the distinct digits.

Reporting by Jessica DiNapoli in New York; Editing by Bill Rigby

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