In a move that has been speculated about for months, Nine West Holdings Inc. is close to filing for Chapter 11 bankruptcy, according to a new report from Bloomberg, which cited sources with knowledge of the situation.
The deal would allow Nine West to restructure about $1.5 billion in debt and would include a sale of parts of the company, Bloomberg said. The pre-planned filing would likely happen by March 15, before an interest payment.
Representatives from Nine West did not immediately return requests for comment.
The brand, owned by private equity firm Sycamore Partners LLC, continues to forge ahead with new projects. For example, it is hosting a 40th anniversary party with actress and model Olivia Culpo during New York Fashion Week.
If the bankruptcy deal does come to fruition, Nine West would be the latest fashion company to take this course of action amid a challenging retail climate. In 2017, a number of major fashion companies headed to bankruptcy court. Some closed down for good, while others sought temporary relief.
Payless sought Chapter 11 protection last April but quickly re-emerged in August. Payless, which had 4,400 stores in 30 countries and set out to close about 400 at the start of its bankruptcy proceedings, now has 3,500 brick-and-mortar outposts. The previously debt-saddled firm said it was able to shed about $435 million in funded debt. Its post-bankruptcy strategy emphasizes a focus on Hispanic consumers.
Last September, Aerosoles announced plans to restructure after filing for Chapter 11 bankruptcy protection due to its outstanding loans. The company said its reorganized business will focus on e-commerce, wholesale and international businesses.