Nine West files for bankruptcyIn the end, Nine West filed for bankruptcy. Last week it filed for Chapter 11 protection with the United States Bankruptcy Court for the Southern District of New York, putting an end to rumours that had been circulating for the last few months.
The decision made by the owners of Nine West, Anne Klein and Gloria Vanderbilt, is aimed at “easing the sale of their Nine West and Bandolino footwear and bag businesses, while the financial restructuring will contribute to increasing the earnings and growth of its stronger brands”, which include One Jeanswear Group, The Jewelrey Group, Kasper Group and Anne Klein.
Moreover, the company announced that it has a “stalking horse” agreement with Authentic Brands Group for the purchase of the Nine West and Bandolino brands, and that the sale will be subject to a competitive sale process.
The company received 300 million dollars in debtor-in-possession financing and has entered a restructuring-support agreement with parties that hold or control more than 78 percent of its secured-term debt and more than 89 percent of its unsecured-term debt: in this way, it will be able to maintain its standard operations going forward with the Chapter 11 case.
“This is the right step to address our two divergent business profiles,” declared Nine West CEO Ralph Schipani. “We will retain our strong, profitable and growing apparel, jewellery, and jeanswear businesses and continue to operate them under a new capital structure so that we can leverage their existing strengths to drive even greater growth. Once we complete the reorganisation process, our company will have meaningfully reduced debt and interest costs and be well positioned for the future.”
Authentic Brands Group, which last month announced its plans to purchase the Nautica da VF Corp. brand, is the owner and licensee of a wide range of lifestyle, celebrity, and entertainment brands, including Frye, Juicy Couture, Elvis Presley and Marilyn Monroe.