Nine West bought by ABG Group for $340m
Nine West Holdings Inc. announced on Monday that it has sold its Nine West and Bandolino footwear and handbag businesses to Authentic Brands Group (ABG) for $340 million.
The firm, which has a global portfolio of celebrity and entertainment, and lifestyle brands, won a court auction for the business by bidding over $140 million more than Authentic Brands Group's stalking horse bid. It was bidding against shoe retailer DSW Inc.
The deal will help bankrupt Nine West Holdings restructure its balance sheet to focus on its more profitable businesses.
"We are pleased to have completed this important step in our restructuring and are now focused on moving forward with the reorganization of our remaining businesses with the support of our key stakeholder groups," said Ralph Schipani, CEO of Nine West Holdings.
"The addition of these two brands enhances ABG's growing lifestyle portfolio, while launching our global footwear platform. We see incredible opportunity to expand the brands beyond footwear and handbags, specifically in the apparel and home categories as well as in new markets around the world," added Jamie Salter, Chairman & CEO of ABG.
As part of the deal, ABG will assume all licensing partnerships and marketing initiatives for the Nine West and Bandolino brands.
The firm has appointed Marc Fisher Footwear to operate the footwear businesses and Signal Products, Inc. to operate the handbag and SLG businesses.
"This purchase elevates ABG's footwear and accessories business to over $2 billion in global retail sales and brings our portfolio to nearly $8 billion," said Nick Woodhouse, President & CMO of ABG.
Nine West Holdings filed for bankruptcy in April. The proceeds from the sale will pay down some of Nine West’s approximately $1.5 billion in debt.
The company still has a portfolio of brands that includes Anne Klein, Jeanswear Group, its Jewelry Group, and Gloria Vanderbilt, to name a few.
The sale is subject to approval by the Bankruptcy Court. A hearing to approve the sale has been scheduled for June 18, 2018, while the sale is expected to be complete by July 15, 2018.
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