Nine West Holdings Inc. (private) has officially filed for bankruptcy under Chapter 11 of the US Bankruptcy Code.
The leading footwear, accessories, women’s apparel, and jeanswear company, who owns retailers such as Nine West, Bandolino, Anne Klein, and Gloria Vanderbilt, has filed for petitions of restructuring and has entered a Restructuring Support Agreement (RSA).
The RSA will involve “parties that hold or control over 78% of [Nine West Holdings] secured term debt and over 89% of its unsecured term debt.”
Chapter 11 proceedings will allow the company to stay in business while negotiations and filings are processed.
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Several of the motions filed will also allow the company to pay wages and benefits, honor programs with retail partners and customers, and pay vendors and suppliers.
Nine West Holdings will receive $300 million USD in debtor-in-possession financing and plans to sell its footwear and handbag businesses, Nine West and Bandolino.
The two companies will be sold to Authentic Brands Group (private), who Nine West Holdings’ Chief Executive Officer, Ralph Schipani says is “a dedicated owner with the resources and know-how to support these businesses for long-term success.”
They also plan to “convert the capital structure to allow for continued growth and investment in its profitable One Jeanswear Group, The Jewelry Group, the Kasper Group, and Anne Klein businesses while ensuring minimal disruption during the restructuring process.”
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Schipani believes “this is the right step to address our two divergent business profile,” but that the company “will retain [its] strong, profitable and growing apparel, jewelry, 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.”
The company’s filing for bankruptcy is only one of many other retailers that have filed for bankruptcy in the US, within the past year.
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