It’s been almost 11 months since Nine West Holdings Inc. filed for bankruptcy, but the former footwear retailer is only now getting approval to proceed with its plan to restructure its debts, according to documents filed Monday with the United States Bankruptcy Court for the Southern District of New York.
The company sold off its Nine West and Bandolino shoe and accessory businesses in June to Authentic Brands Group — which also owns and licenses brands such as Frye, Vince Camuto and Juicy Couture — in a court auction for $340 million.
At the time of the purchase, Nine West Holdings CEO Ralph Schipani called ABG an “industry leader” that would “bring the dedicated expertise and resources to manage the next stage in the life of two strong brands.” He continued, “We are pleased to have completed this important step in our restructuring and are now focused on moving forward with the reorganization of our remaining businesses with the support of our key stakeholder groups.” In August, ABG signed a deal that will see Nine West in Kohl’s stores beginning in July.
Nine West has run into roadblocks with creditors throughout the remainder of the bankruptcy process, however, as it has tried to trim its pre-bankruptcy debt obligations by more than $1 billion. Bondholders have accused the company’s private equity owner, Sycamore Partners LP, of siphoning value from Nine West and threatening to take away the business of Belk Inc., a department store chain that it also controls, if earlier deals weren’t signed.
Nine West’s remaining businesses include Anne Klein, One Jeanswear Group, The Jewelry Group and The Kasper Group.
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