Nine West Holdings Inc., a footwear, accessories, women's apparel and jeanswear company, has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code, company officials announced Friday.
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The company has a portfolio of brands that includes Nine West, Anne Klein and Gloria Vanderbilt. In a release late last week, officials said the company filed its bankruptcy paperwork “to facilitate the sale of its Nine West and Bandolino footwear and handbag business and to right-size its capital structure around its profitable and growing businesses, including One Jeanswear Group, The Jewelry Group, the Kasper Group, and Anne Klein.”
With the restructuring, the company said it received $300 million in debtor-in-possession financing and has entered into a "restructuring support agreement" with parties that hold or control over 78 percent of its secured term debt and over 89 percent of its unsecured term debt.
"Such financing, combined with cash generated from the company's operations, will provide the company with the liquidity necessary to maintain its operations in the ordinary course during its Chapter 11 case," company officials said.
Nine West officials also said the agreement “demonstrates the support of the company’s lenders and their confidence in the go-forward businesses, as well as providing a clear path to emergence from Chapter 11.”
Company officials said they will seek to sell the Nine West and Bandolino footwear and handbag businesses. Officials said the company has entered into a “stalking horse” asset purchase agreement with Authentic Brands Group, and that the sale will be subject to a competitive sale process.
The future focus of the company will be on its “profitable” One Jeanswear Group, The Jewelry Group, the Kasper Group, and Anne Klein businesses during the bankruptcy process.
The company is saddled with about $1.4 billion in debt, according to media reports.