Nine West Bankruptcy: Footwear Brand Will No Longer Make Shoes
A Nine West bankruptcy will have the company no longer making shoes.
According to the company, it is filing bankruptcy for a couple of reasons. The first is to restructure its business. It plans to do this by selling its Nine West and Bandolino footwear and handbag businesses.
The Nine West bankruptcy has the company entering into a "stalking horse" asset purchase agreement with Authentic Brands Group . It notes that the sale of its footwear and handbag businesses will be open to competitive bidding.
The second focus of the Nine West bankruptcy is to prop up its other businesses so that they can continue on uninterrupted during the bankruptcy. This includes its One Jeanswear Group, The Jewelry Group, the Kasper Group, and Anne Klein businesses.
Nine West notes that the above businesses are all profitable investments for it. However, it will be working to reduce the size of the businesses to best match their potential and allow for more growth.
The Nine West bankruptcy has the company working with its debt holders on this Restructuring Support Agreement. It notes that this agreement was made with holders of 78% of its secured term debt and 89% of its unsecured term debt.
Nine West also says that it has secured $300 million in financing from its debt holders. It believes that this, when combined with its own cash generated from operations, will be enough to allow it to continue business normally while it completes the Chapter 11 bankruptcy process. It doesn't say when it plans to come out of bankruptcy.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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