Nine West files for bankruptcy

AP Photo/ Lynne Sladky, File
Close

Nine West files for bankruptcy

AP Photo/ Lynne Sladky, File
This Nov. 25, 2011, file photo shows people shopping for shoes at Nine West on Black Friday at Dadeland Mall, in Miami. Nine West Holdings Inc. has filed for bankruptcy protection, the latest retailer to do so as it attempts to restructure its debt and refocus on its more successful products. The shoe chain said Friday, April 6, 2018, the bankruptcy filing was made to ease the sale of its Nine West and Bandolino footwear and handbag business, and so it can focus more on its growing businesses, which include One Jeanswear Group, The Jewelry Group, the Kasper Group and Anne Klein.

Nine West Holdings Inc., a footwear, accessories, women’s apparel and jeanswear company, has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code, company officials announced Friday.

>> Read more trending news

The company has a portfolio of brands that includes Nine West, Anne Klein and Gloria Vanderbilt. In a release late last week, officials said the company filed its bankruptcy paperwork “to facilitate the sale of its Nine West and Bandolino footwear and handbag business and to right-size its capital structure around its profitable and growing businesses, including One Jeanswear Group, The Jewelry Group, the Kasper Group, and Anne Klein.”

With the restructuring, the company said it received $300 million in debtor-in-possession financing and has entered into a “restructuring support agreement” with parties that hold or control over 78 percent of its secured term debt and over 89 percent of its unsecured term debt.

“Such financing, combined with cash generated from the company’s operations, will provide the company with the liquidity necessary to maintain its operations in the ordinary course during its Chapter 11 case,” company officials said.

Nine West officials also said the agreement “demonstrates the support of the company’s lenders and their confidence in the go-forward businesses, as well as providing a clear path to emergence from Chapter 11.”

Company officials said they will seek to sell the Nine West and Bandolino footwear and handbag businesses. Officials said the company has entered into a “stalking horse” asset purchase agreement with Authentic Brands Group, and that the sale will be subject to a competitive sale process.

The future focus of the company will be on its “profitable” One Jeanswear Group, The Jewelry Group, the Kasper Group, and Anne Klein businesses during the bankruptcy process.

The company is saddled with about $1.4 billion in debt, according to media reports.

Magic Contests

Magic Weather

Bedtime Beats

#MagicRelationshipGoals

Presented by: Bay Area Renaissance Festival

Mobile Apps

Everything you love about mymagic949.com and more! Tap on any of the buttons below to download our app.

AMAZON ALEXA

Enable our Skill today to listen live at home on your Alexa Devices!