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A Nine West bankruptcy filing appears likely, according to reports from the US overnight.
Retail Dive has reported that the embattled shoe retailer has found a buyer for some of its assets and plans to work to restructure its debt as soon as a sale is complete. However, Debtwire and Bloomberg both report NIne West is prepared to file for Chapter 11 bankruptcy if necessary, suggesting there is pressure form lenders.
Neither NIne West or its private equity owner Sycamore, which paid $2.2 billion for the business in 2014, responded to requests for comment on the matter.
Debtwire associate editor Reshmi Basi says the timing is likely to be determined by a March 15 payment deadline.
The company has been struggling with its debt since late 2016 and last year was named by ratings agency Moody’s in a list of “at risk” retailers, citing “weak operating performance and very high debt and leverage burden”.
Basu told Retail Dive Nine West’s outlook was decidedly uncertain. “Time will tell how it works. They’re going back and forth between creditors about how to address maturities,” she said.
Nine West is steadily losing market share to online retailers in a market of softening apparel sales.
