Nine West Holdings has announced it is filing for Chapter 11 bankruptcy and is set to sell off its eponymous footwear brand and Bandolino handbag line.
The US-based firm, which trades from three locations in the UK and is stocked in Debenhams, Selfridges and House of Fraser, is seeking to restructure its assets and reduce its inflated debt pile after filing for bankruptcy protection on Friday.
It listed debts of between $1 billion (£710 million) and $10 billion (£7.1 billion), while revealing assets of just $500 million (£354 million) to $1 billion (£710 million).
Though its Nine West and Bandolino brands will be sold via auction as part of the bankruptcy filing, it has reportedly lined up Authentic Brands Group as a potential buyer.
Sycamore Partners, the group’s private equity owner, will reportedly focus on more successful brands Anne Klein, Kasper Group and The Jewelry Group.
“This is the right step to address our two divergent business profiles,” chief executive Ralph Schipani said.
“We will retain our strong, profitable and growing apparel, jewellery, and jeanswear businesses and continue to operate them under a new capital structure so that we can leverage their existing strengths to drive even greater growth.”