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Nine West files amended bankruptcy plan that cuts debt
AMERICAN footwear and apparel company Nine West Holdings Inc filed an amended Chapter 11 bankruptcy plan that will reduce its pre-bankruptcy debt obligations by more than US$1 billion, the company said on Wednesday.
The plan is expected to provide US$105 million cash recovery to stakeholders through the settlement of potential claims and causes of action against the company's indirect equity owners, it said.
Nine West, which owns brands such as Anne Klein and Gloria Vanderbilt, said that it will also receive a three-year purchase commitment from Belk Inc for an assortment of merchandise across the company's businesses.
A hearing has been scheduled for Nov 7 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. 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.
US retailers are going through a period of upheaval, throwing into doubt the future of the retailers that once dominated US malls but have withered in the age of Internet shopping.
The century-old department store chain Sears Holdings Corp filed for bankruptcy on Monday. 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. REUTERS