Nine West Holdings is planning to sell its namesake footwear brand as it seeks to reorganise and reduce its debt under US bankruptcy law.
The firm said it expects to sell the Nine West and Bandolino shoe and handbag brands to Authentic Brands Group, owner of Frye and Juicy Couture.
The move will allow the firm to focus on more profitable parts of its business, such as Anne Klein.
It said major creditors support its restructuring plans.
They have loaned a fresh $300m in financing, which will help the firm continue to operate while the Chapter 11 bankruptcy process moves forward.
Nine West has standalone outlets in London and its shoes and handbags are stocked in department stores House of Fraser, Debenhams and Selfridges in the UK.
Ralph Schipani, Nine West Holdings’ chief executive, said the bankruptcy petition, filed Friday, was the “the right step”.
The sale of Nine West and Bandolino will be subject to an auction as part of the bankruptcy, allowing another buyer to emerge.
“Once we complete the reorganisation process, our company will have meaningfully reduced debt and interest costs and be well-positioned for the future,” Mr Schipani said.
Nine West, which has already closed dozens of stores, is one of more than a dozen US retailers to file for bankruptcy in recent years, including Claire’s, Payless ShoeSource, Toys R Us and Aerosoles.
Nine West Holdings is owned by Sycamore Partners, a New York private equity fund.
In court filings on Friday, Nine West estimated that it had $500m-$1bn in assets and liabilities of $1bn-$10bn.
Source: BBC News