Nine West Holdings sale procedures approved; auction set for June 8

By Caroline Salls

Pittsburgh, May 7 – Nine West Holdings, Inc. obtained court approval of the bid procedures for the proposed sale of its Nine West and Bandolino footwear and handbag business, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

The company has entered into a stalking horse asset purchase agreement with Authentic Brands Group, which includes a commitment by Authentic Brands to pay $200 million for the intellectual property associated with the Nine West, Bandolino and associated brands and some working capital assets.

Nine West Holdings said it is expected to retain about $30 million to $40 million of accounts receivable under the stalking horse agreement.

The purchase price associated with the purchased intellectual property is $123 million, establishing a baseline bid, the company said.

If Authentic Brands is not ultimately the high bidder, Nine West will pay it a $6 million break-up fee and reimburse up to $750,000 of its sale-related expenses.

Competing bids are due by 4 p.m. ET on June 4 and must exceed the stalking horse bid by at least the amount of the bid protection amounts and a $1 million overbid amount.

An auction will be held on June 8, if necessary.

The sale hearing is scheduled for June 18.

Nine West is a New York-based designer, marketer and wholesaler of apparel, footwear and accessories. The company filed bankruptcy on April 6 under Chapter 11 case number 18-10947.

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