Nine West Is Said To Be Debt Restructuring Through Bankruptcy Protection.

The shaky Nine West Holdings Inc. Jiu Xi Limited (Nine West) will soon be restructured through bankruptcy protection.

According to the world clothing and shoe net, on Wednesday, citing sources, Nine West has signed an agreement with 9 creditors to reach an agreement on $1 billion 500 million debt, which is said to include applications for bankruptcy protection and sale.

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Business.

For cash flow emergency Nine West filed for bankruptcy protection, the market has long been conclusive, and it is only a matter of time. The 15 day payment of interest to creditors on March is probably the deadline for Nine West to submit Chapter 11.

According to sources, the debt of the first lien creditor will be reimbursed, and the second position will be restructured through the holding group.

Sycamore Partners LLC, who has been good at acquiring retail debt and assets, may lose control of Nine West because of the debt restructuring.

According to data from Bloomberg tracking bonds, the price of Nine West, which was 8.25% in 2019, was dived to $0.11 in 4 years.

Nine West was born in 1978.

Market benchmarking brands, including Nine West, including brands such as Nine West, Gloria Vanderbilt, L.e.i and Easy Spirit, were sold by Sycamore Partners in 2014 at a high price of 22 US $100 million.

After the paction is completed, the company is divided into four parts: Nine West, Anne Klein, Easy Spirit and NW Jewelry.

At the beginning of last year, the company bought the women's clothing group Kasper Group with the funds of selling Easy Spirit wholesale business. The above pactions made Nine West have more cash flow and liquidity, but still a drop in the bucket for a company with a leverage of 18 times. The market believes that the company's current high leverage and the debt can not be solved, so it is still difficult to avoid bankruptcy reorganization.

The market has different views on the plight of Nine West, Jeffrey Van Sinderen Sinderen, an analyst at B. Riley & Co., said earlier that the company's business may not be a problem, but that women's shoes industry is facing challenges. "You can produce the best products in the world, but no one needs more."

The weakness of women's shoes market is global. The Belle International Holdings Ltd, China's largest footwear enterprise (1880.HK) and Daphne International Holdings Limited (0210.HK) Daphne International Holdings Ltd, which have been known as "shoe king", have suffered the same situation in the past two years, and can only reduce their capital expenditure through a lot of layoffs and closes.

Although Nine West's major shareholder, Sycamore, has acquired many takeover actions in the retail industry, most of the benefits of the fund are obtained through restructuring and sale of the target company, and the intention is not to really restore the retail capacity of the underlying brand.

Sycamore has already sold a lot of cash through the acquisition of The Jones Group Inc., including Kurt Geiger, Stuart Weitzman, Jones New, and so on.

Rating agency Moody 's Investors Service Moodie has also been downgrading the Nine West rating and believes that US companies are not solvent.

Moodie analyst Mike Zuccaro has said that whether Nine West or Kasper Group is dependent on sales of department stores, especially the former is extremely dependent on sluggish department stores in recent years, and the US Department stores are now unable to protect themselves. Previously, more than 100 years of Macy s Inc. (NYSE:M), Messi and department store were rumoured to be on sale, and the Department Store giant continued to shrink its store camps.

Suyun Qu, a leading analyst at the end of the year, said in a report released by the S & P at the end of August 2016 that Nine West was losing its leading position in the key US market and its market share was eroded due to marketing mistakes, quality problems and competition among e-commerce providers.

The high debt and deficit business may make the company debt restructuring or replacement in the coming year.

The bankruptcy of Nine West will be the biggest bankruptcy of retail I this year, and it also confirms the pre - judgment of industry research institutions on the continued 2017 bankruptcy of retail industry.

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