Nine West, Bandolino brands sold for $340m
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Nine West Holdings Inc. has sold its Nine West and Bandolino footwear and handbag businesses at a court auction to Authentic Brands Group for $340 million.
Nine West Holdings Inc. has sold its Nine West and Bandolino footwear and handbag businesses at a court auction to Authentic Brands Group for $340 million.
The brand management firm won the auction by bidding more than $140 million over its initial stalking horse bid.
Ralph Schipani, chief executive officer of Nine West, said, “We are pleased to have completed this important step in our restructuring and are now focused on moving forward with the reorganization of our remaining businesses with the support of our key stakeholder groups.”
ABG chairman and ceo Jamie Salter said, “The addition of these two brands enhances ABG’s growing lifestyle portfolio, while launching our global footwear platform. We see incredible opportunity to expand the brands beyond footwear and handbags, specifically in the apparel and home categories as well as in new markets around the world.”
Once the sale is approved by a Manhattan bankruptcy court and the deal has closed, ABG will assume all the licensing partnerships and marketing initiatives for both brands. ABG named Marc Fisher Footwear as operator of the footwear businesses and Signal Products as operator of the handbag businesses. A court hearing is scheduled for June 18 and a closing date is slated for July 15.
Nick Woodhouse, president and chief marketing officer of ABG, said, “This purchase elevates ABG’s footwear and accessories business to over $2 billion in global retail sales and brings our portfolio to nearly $8 billion.”
Nine West Holdings filed for Chapter 11 bankruptcy court protection in April in a Manhattan bankruptcy court.
Nine West Holdings sold the two businesses so it can recapitalize its balance sheet. The sale will help the bankrupt firm restructure operations so it can focus on its profitable businesses — One Jeanswear Group, its Jewelry Group, the Kasper Group and its Anne Klein business. The company has said it plans to exit bankruptcy court proceedings around September.
Questions & Answers
Q.Why did Nine West Holdings Inc. Sell its Nine West and Bandolino brands?
Why did Nine West Holdings Inc. Sell its Nine West and Bandolino brands?
Nine West Holdings Inc. Sold these businesses to recapitalise its balance sheet. This will help the bankrupt firm restructure operations and focus on its profitable businesses, aiming to exit bankruptcy around September.
Q.What is Authentic Brands Group's strategy for the acquired brands?
What is Authentic Brands Group's strategy for the acquired brands?
Authentic Brands Group plans to expand the Nine West and Bandolino brands beyond footwear and handbags into apparel and home categories. They also aim to launch a global footwear platform and target new markets worldwide.
Q.Which parts of Nine West Holdings' original business remain after the sale?
Which parts of Nine West Holdings' original business remain after the sale?
After selling Nine West and Bandolino, Nine West Holdings will focus on its remaining profitable businesses. These include One Jeanswear Group, its Jewelry Group, the Kasper Group, and its Anne Klein business.
Q.When is the acquisition expected to be finalised?
When is the acquisition expected to be finalised?
A court hearing for approval is scheduled for June 18, and the deal is slated to close on July 15. The sale still requires approval from a Manhattan bankruptcy court.
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