Nine West Holdings has sold its Nine West and Bandolino footwear and handbag businesses to Authentic Brands Group for US$340 million.

The deal will help bankrupt Nine West Holdings restructure its balance sheet to focus on its more profitable businesses. Nine West filed for Chapter 11 bankruptcy in New York in April.

“We are pleased to have completed this important step in our restructuring and are now focused on moving forward,” says Nine West Holdings CEO Ralph Schipani.

“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,” says Authentic Brands chairman/CEO Jamie Salter.

As part of the deal, Authentic Brands will assume all licensing partnerships and marketing initiatives for the Nine West and Bandolino brands. The firm has appointed Marc Fisher Footwear to run the footwear businesses and Signal Products to run the handbag and SLG businesses.

With the new businesses on board, Authentic Brands has expanded its footwear and accessories business to more than $2 billion in global retail sales and its total portfolio to nearly $8 billion, said president/CMO Nick Woodhouse.

Proceeds from the Nine West Holdings sale will pay down some of its approximately $1.5 billion in debt. The company still has a portfolio of brands including Anne Klein and Gloria Vanderbilt, plus jeanswear and jewellery groups.

The sale is subject to approval by the Bankruptcy Court. A hearing to approve the sale has been set for Monday, while the sale is expected to be complete by July 15.

Source: Inside Retail Hong Kong.