Women'S Shoes Brand Nine Xi Or Face Liquidation Bankruptcy Risk

U.S.A

Nine West is facing risk of liquidation.

Due to the surge in debt, Nine West Sycamore Partners LLC, the nine parent company, plans to liquidate the woman's shoes.

Once Nine West has been liquidated, then Sycamore Partners LLC is really called "brand killer".

As we all know, Sycamore Partners LLC has long been keen on acquiring bad assets. At present, the private equity fund is trying to buy A ropostale Inc., which has declared bankruptcy, and tries to liquidate the latter to repay its debts.

Although A e ropostale Inc. has consistently rejected the result, there was no regret for Sycamore Partners LLC's financing, and this step is the first step that A ropostale Inc. is unable to take. However, A ropostale ropostale has recognized the purpose of the company and exposed its intentions in court.

However, adhering to the trend of the largest creditor

The bankruptcy judge still approved the Sycamore Partners LLC's acquisition of A ropostale Inc. Inc..

In 2014, when Sycamore Partners LLC bought the Nine West nine star parent The Jones Group Inc. at $2 billion 200 million, the market predicted that Nine Xi nine Xi would not have a good result under every situation.

Rating agency Moody's Investors Service Moodie released a report in August 26th that lowered the credit rating of Nine West Holdings Inc. Inc. company from Caa1 to Caa2, and the outlook is negative.

He also said he would not rule out further downgrading along with the further deterioration of the company's capital structure.

Moodie said that the credit rating of Nine West Holdings and Inc. Jiu Xi Limited will continue to decline based on the income and profits of the women's shoes enterprises.

In the fiscal year ending July 2, 2016, Nine West's nine year old EBITDA plunged to $52 million from $9000 in the same period last year, making the company's balance sheet leverage 28 times.

Such a high leverage ratio, the company's asset structure is not sustainable, facing Default risk, including potential bad debt swap.

Although Nine West has already tried to improve its business by closing stores, reducing administrative costs and improving product quality, Moodie said in the report that the women shoes enterprises need more time to face their business models and face challenges such as customer turnover and Ku Cungao enterprises.

However, the only consolation is that Nine West's cash flow is still abundant, and the most recent debts are 2019, and there is a $200 million revolving loan.

Another rating agency, S&P Global Ratings, Suyun Qu, also said in a report last week that because of marketing errors, quality problems and the competition among e-commerce providers, Nine West is now losing its leading position in the key US market and its market share has been eroded.

The high debt and deficit business may make the company debt restructuring or replacement in the coming year.

According to sources, restructured company and creditors have approached Nine West Jiu Xi, hoping that the company will reduce its debt through restructuring.

It is reported that the company's current debt is as high as 17 billion US dollars, which is equivalent to the income, and the senior unsecured note, which has a 427 million interest rate of 8.25%, will expire in 2019.

Born in 1978, Nine West Jiu Xi has been the benchmark brand of women's shoes market. Nine West Holdings, Inc. nine year old limited company has previously included Nine West, Gloria Vanderbilt, L.e.i and Vanderbilt, and many other brands. In 2014, after the completion of the buyout of the parent company, the company was divided into four parts: the company, the company, the company and the company.

However, in the past three years, due to the weakness of the main retail markets in the United States and China, the low consumption intention, and the increasingly serious prudence of Nine West, the main wholesale channel of shopping mall, the clean up of stocks and orders, and the popularity of sports, the performance of fashion and leisure shoes has been challenged increasingly.

Jeffrey Van Sinderen, a B. Riley & Co. analyst at the investment bank, commented that the business of Nine West "Jiu Xi" may not be a problem, but that women's shoes industry is facing challenges. "You can produce the best products in the world, but no one needs more."

The weakness of women's shoes market is global, and the biggest shoe companies in China, Belle International Holdings Ltd and Daphne International Holdings Limited Daphne International Holdings Ltd, have the same situation in the past two years.

Previous sources have revealed that in the Chinese market, the headquarters of Nine West in Dongguan, China, has been dissolved.