Nine West holdings files for bankruptcy
US-based footwear, accessories and apparel retailer Nine West Holdings filed for bankruptcy last Friday, agreeing to terms with Juicy Couture owner Authentic Brands Group to sell its Nine West and Bandolino businesses.
In its Chapter 11 filing last week it was revealed that the company has more than US$1 billion in outstanding debt, but the business will continue to trade during its bankruptcy thanks to a fresh $300 million loan.
The company said selling its Nine West and Bandolino footwear and handbag brands will allow them to focus on more profitable parts of its business, including Anne Klein and One Jeanswear Group.
Ralph Schipani, Nine West CEO, said that the restructuring will help the company reduce debt and increase growth by allowing it to focus on its stronger brands.
“This is the right step to address our two divergent business profiles,” he said. “We will retain our 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.”
Schipani added that once the company has completed the reorganisation process it will have meaningfully reduced debt and interest costs and be well positioned for the future