Nine West files for Chapter 11 to effectuate a sale and reorganization.
Nine West Holdings, parent company of brands that include Anne Klein and Gloria Vanderbilt, filed for chapter 11 to facilitate a sale of the Nine West and Bandolino brands. Authentic Brands Group will act as the stalking horse bidder, pending the court’s approval, with a bid valued at $200 million for the intellectual property.
Additionally, Nine West has signed a restructuring support agreement (RSA) with certain creditors. The RSA proposes paying the term secured term loan lenders in full, providing the unsecured term loan lenders with 100% of the reorganized company’s equity.
Nine West cited the general downward trend that has plagued many other retailers, a decline in its l.e.i. brand’s sales and lastly the Nine West Group’s waning operating performance.
As of the filing, Nine West had roughly $1.578 billion of funded debt outstanding and listed assets as $500 million to $1 billion. The bankruptcy case will be funded by two loans, totaling $300 million loan from prepetition lenders.
Read CEO Ralph Schipani’s declaration in support of the first day motions here.
View the Chapter 11 petition here.