Shoe retailer and fashion company Nine West has filed Chapter 11 bankruptcy in New York federal court.
The chapter 11 filing reveals that the company owes more than $1 billion.
The apparel company, which owns brands such as Anne Klein and Gloria Vanderbilt, said it had received $300 million in debtor-in-possession financing and had entered a restructuring agreement but missed a debt interest payment in March.
The company said in a statement that it plans to sell Nine West and its Bandolino line to intellectual property corporation Authentic Brands Group (ABG). It will instead focus on its apparel, jewellery and jeanswear businesses.
ABG owns Frye, Juicy Couture and Aéropostale, as well as managing licensing and merchandising for celebrity brands including Elvis Presley, Marilyn Monroe and Muhammad Ali.
Nine West Holdings CEO Ralph Schipani called the bankruptcy filing the “right step to address our two divergent business profiles”.
“Once we complete the reorganisation process, our company will have meaningfully reduced debt and interest costs and be well-positioned for the future.”
Nine West joins a growing list of retailers that have filed for bankruptcy this year such as Payless Shoes, Claire’s and Toys R Us. Toys R Us, which accumulated $5 billion in debt, said that it is closing or selling all of its US stores.
Retailers have been struggling to compete with online retailers like Amazon. Last year, more than 7,000 stores closed. Where will the retail exodus lead? What are your thoughts? Comment below.
