Nine West Holdings filed for Chapter 11 bankruptcy, and will restructure around its profitable and growing businesses, including One Jeanswear Group, The Jewelry Group, The Kasper Group and Anne Klein. The retailer received a $300 million loan from investors to fund operations during the process.
The bankruptcy process will facilitate the sale of the Nine West and Bandolino footwear and handbag business. Authentic Brands Group will submit an initial bid, and a competitive auction for the business will follow.
Continue reading “Nine West Holdings To Restructure Under Bankruptcy”
Bachrach, a menswear retailer that has operated since 1877, is closing its remaining 14 stores in eight states.
The Los Angeles-based chain had briefly emerged from its second bankruptcy in August 2017 after an earlier round of store closures, but filed for Chapter 11 for the third time on February 16, 2018.
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Tops Friendly Market, a New York-based chain of grocery stores, has filed for Chapter 11 bankruptcy protection. As of Dec. 30, 2017, the supermarket had $1.18 billion in liabilities, with $977 million in assets, along with an “unsustainable” debt load, according to a court filing.
The supermarket chain is pursuing the financial restructuring in order to eliminate a “substantial portion of debt from the company’s balance sheet,” according to a company statement. As with many retail bankruptcies, Tops blamed challenging market conditions, such as falling food prices and excess competition, along with an inability to invest further capital into the business for its financial position. But Tops did what most companies have not done: specifically pointing at Amazon as the culprit.
Continue reading “Citing ‘Unsustainable’ Debt, Tops Friendly Market Files For Bankruptcy”
Although the department store sector had a promising holiday season, one struggling retailer is taking drastic measures to try to complete a turnaround. Bon-Ton Stores filed for Chapter 11 bankruptcy protection amid growing debt.
Bon-Ton has $572 million in debt due in December 2018 and carries $850 million altogether, according to Moody’s, with S&P Global Market Intelligence listing it as a candidate for bankruptcy this year. The retailer failed to make a $14 million interest payment to lenders in December 2017, and has not posted a profit since 2010.
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Nine West Holdings and its creditors are nearing a deal to restructure approximately $1.5 billion in debt, according to a report from Bloomberg. As part of the reorganization, Nine West would file for Chapter 11 bankruptcy and sell off divisions of its business. The goal is for Nine West to file for bankruptcy before a March 15 interest payment, the report said.
Nine West and its private equity owner Sycamore Partners have declined to comment on the report. The retailer doesn’t have any debt due until 2019, but by then it will have to refinance roughly $1 billion.
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Vitamin World has filed for Chapter 11 bankruptcy to restructure its business, one week after CEO Michael Madden told The Wall Street Journal that the retailer would seek this protection. The privately held vitamins and supplements retailer announced it would close 51 of its 334 stores after it was unable to strike a deal with landlords to renegotiate leases.
In a year full of retail bankruptcies and reorganizations, the Vitamin World news shows that the industry continues to see new casualties, particularly from merchants with a large brick-and-mortar footprint that includes underperforming locations.
Continue reading “Vitamin World Files For Bankruptcy, While Toys ‘R’ Us Mulls The Option”
Add True Religion Brand Jeans to the growing list of 2017 retail bankruptcies. The company has reached an agreement to reduce its debt by more than $350 million via a voluntary Chapter 11 petition to the U.S. Bankruptcy Court for the District of Delaware. Under the terms of this pre-arranged restructuring with its sponsor, TowerBrook Capital Partners, True Religion will continue to operate without interruption to customers, employees and business partners.
“By dramatically improving our capital structure 24 months in advance of our term loan maturity, we will continue business operations as usual and provide our employees and business partners the long-term stability they need,” said John Ermatinger, President and CEO of True Religion in a statement. The reorganization will also “provide the necessary flexibility to invest in our growing digital footprint, building connections with customers and improving organizational competencies.”
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It’s become a depressingly familiar headline in 2017: [RETAILER NAME HERE] Declares Bankruptcy, Closes [XX] Stores. The Payless Chapter 11 filing on April 4 makes it the 10th retailer to declare bankruptcy in 2017. That’s more than all retail bankruptcies in 2016, according to CNBC. The rash of retail peril in Q1 puts the industry on pace to match, or even exceed, the 18 retailers that went bust during the Great Recession year of 2009.
Other retailers recently declaring bankruptcy include: Limited Stores, American Apparel, bcbg Max Azria, hhgregg, Gordmans, Gander Mountain and Wet Seal. Additionally, Sears Holdings executives have admitted the depth of the company’s financial problems, and many analysts are already preparing the venerable retailer’s obituary.
Continue reading “Payless Catches Bankruptcy Bug: Is Retail Doomed?”
BCBG Max Azria is the latest in a long line of fashion and apparel retailers to file for Chapter 11 bankruptcy — providing another warning sign that more retailers could follow.
The chain has begun closing 120 stores as part of its restructuring, the company’s Chief Restructuring Officer Holly Felder Etlin said in court papers filed in Manhattan federal court on Feb. 28. BCBG has obtained a commitment of $45 million in new debtor-in-possession (DIP) financing to “ensure normal operations” during the Chapter 11 process. The company expects to complete its reorganization within six months.
Continue reading “BCBG Max Azria Goes Bankrupt…Is hhgregg Next?”