Nine West Holdings, which owns the Nine West and Anne Klein brands, has filed for bankruptcy.
Friday’s chapter 11 filing shows that the company owes more than $1 billion.
Nine West said in a statement that it plans to sell Nine West and its Bandolino line to Authentic Brands Group. ABG owns Juicy Couture and Aéropostale, among others.
The company’s eponymous brand and Bandolino both sell women’s shoes, handbags and accessories.
Ralph Schipani, the struggling retailer’s CEO, said that the restructuring will help the company reduce debt and increase growth by allowing it to focus on its stronger brands, like Anne Klein and One Jeanswear Group.
“This is the right step,” Schipani said. “We will retain our strong, profitable and growing apparel, jewelry, and jeanswear businesses.” He added that the changes should help the company to “be well positioned for the future.”
Nine West said it expects to continue operating normally during the bankruptcy process.
The company, which has been owned by Sycamore Partners Management since 2014, joins a growing list of retailers that have filed for bankruptcy this year. Claire’s filed for bankruptcy last month, and Toys “R” Us in September. The toy seller said recently that it is closing or selling all of its US stores.
Last year, more than 7,000 stores closed, which set a record.
Retailers have been struggling to compete with online retailers like Amazon, and suffering from the death of the mall. Many have also struggled to survive under mountains of debt.
Written by Danielle Wiener-Bronner for CNN.
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