US shoe chain Nine West is the latest retail domino to fall, filing for Chapter 11 bankruptcy protection as it attempts to restructure debt and focus on the future of its growing businesses.
Nine West Holdings Inc is the latest retailer to file for Chapter 11 bankruptcy protection in the US. The company has listed debts of more than $US1 billion. It has received $US300 million in financing and has a restructuring agreement so that it will be able to maintain its operations during this process.
“This is the right step to address our two divergent business profiles,” Nine West Holdings’ CEO, Ralph Schipani, said in a statement. The bankruptcy filing was made to ease the sale of its Nine West and Bandolino footwear and handbag business. It hopes to focus on its growing businesses, including One Jeanswear Group, The Jewelry Group, the Kasper Group and Anne Klein.
“Once we complete the reorganisation process, our company will have meaningfully reduced debt and interest costs and be well positioned for the future,” Schipani added.
The company has said it has a ‘stalking horse’ agreement with Authentic Brands Group for the Nine West and Bandalino brands in order to determine the markets for its assets. “We have a purchase commitment from a dedicated owner with the resources and know-how to support [Nine West and Bandalino] for long-term success,” said Schipani.
Nine West was one of the many distressed retailers put on a watch list of distressed retailer earlier this year. That list included Toys R Us which accounted last month it would sell or close all its stores across the US and UK.