Nine West confirms bankruptcy rumours, to sell some brands
today Apr 9, 2018
U.S. footwear and apparel company Nine West Holdings Inc filed for bankruptcy on Friday in a Manhattan bankruptcy court and said it would sell its Nine West and Bandolino footwear and handbag business to Authentic Brands Group.
The filing estimated assets of $500 million to $1 billion, with estimated liabilities of $1 billion to $10 billion.
In addition to Nine West, 10 affiliates filed for bankruptcy court protection, including Kasper Group and One Jeanswear Group, which includes the brands Gloria Vanderbilt and Jessica Simpson, as well as women’s denim owned by the Nine West and Bandolino brand names.
Nine West said it had received $300 million (213.01 million pounds) in debtor-in-possession financing and had entered a restructuring agreement. In the filing, the company said its business operations generated $1.6 billion in net revenues in 2017 with $1.6 billion in aggregate funded debt obligations.
In 2014, Sycamore acquired the Jones Group Inc, then the parent of Nine West, in a deal valued at $2.2 billion. Sycamore then sold high-end shoe wear lines Stuart Weitzman and Kurt Geiger, part of the Jones Group.
For years the women's fashion retailer and wholesaler has been losing market share amid slowing apparel sales and competition from e-commerce players.
U.S. retailers are going through a period of upheaval, with more than 15 filing for bankruptcy last year unable to stand up to competition from online shopping.
Additional reporting by Benjamin Fitzgerald
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