The Once Beloved Nine West is Today’s Loveless Nine West

Nine West Holdings Inc., American footwear and apparel company that once dominated U.S. shopping mall with its products, has filed an amended Chapter 11 (bankruptcy protection) plan that will reduce its pre-bankruptcy debt obligations by more than $1 billion.

The file for bankruptcy protection was done on April and the company sold its Nine West and Bandolino footwear and handbag businesses at a court auction to Authentic Brands Group for $340 million in June. While the U.S. citizens are doubting of how Nine West will be able to revive and compete with the e-commerce company such as Amazon.

 

Nine West said that the plan is expected to provide $105 million cash recovery to stakeholders through the settlement of potential claims and causes of action against the company’s indirect equity owners.

The plan will be officially announced in a hearing on November 7, 2018, to consider approval of the terms of the amended Chapter 11 plan, following which it will be passed on to voting creditors for their consideration.

 

A few days ago, Sears Holdings Corp., the parent company of the chain stores Kmart and Sears, also filed for Chapter 11 bankruptcy Protection. While a year ago, Toy ‘R’ Us who tried to draw its last breath was also forced to liquidate six months later.