by Apparel Resources News-Desk
24-October-2018 | 2 mins read
Nine West Holding Inc., an American footwear and apparel company, has filed an amended Chapter 11 bankruptcy plan to reduce its pre-bankruptcy debt obligation by more than US $ 1 billion.
This step is expected to provide US $ 105 million cash recovery to stakeholders through the settlement of potential claim and causes of action against the company’s indirect equity owners.
The company in its statement said that it will also receive a three-year purchase commitment form Bel Inc. for an assortment of merchandise across the company’s businesses.
Moreover, a hearing has been scheduled on Nov 7 for the consideration of approval of the term of the amended chapter 11 plan which will be passed on to the voting creditors for their consideration.
Also, the company filed for bankruptcy protection in April and sold its Nine West and Bandolino footwear and handbag businesses at a court auction to Authentic Brands Group for US $ 340 million in June.
The online shopping trend has left the future of retailing in doubt which once dominated US mall.
The other case encountered in the recent times is of the century-old store chain Sears Holding Corp. (SHLD.O), that filed for bankruptcy; Toys ‘R’ Us tried to emerge from its 2017 bankruptcy filing but was forced to liquidate six months later after creditors lost confidence in the toy retailer’s turnaround plan. Aerosoles Group was among at least a dozen retailers selling apparel, electronics, and discount shoes, that filed for bankruptcy last year to slash their store count and better compete with e-commerce giants such as Amazon.com Inc.
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