• Nine West Holdings has sold its Nine West and Bandolino footwear and handbag business to Authentic Brands Group (ABG).
  • ABG was the successful bidder in a bankruptcy auction with a winning bid valued at more than US$340m. 
  • The deal elevates ABG's footwear and accessories business to more than $2bn in global retail sales and brings its portfolio to almost $8bn.
Nine West Holdings has sold its Nine West and Bandolino footwear and handbag business to Authentic Brands Group (ABG)

Nine West Holdings has sold its Nine West and Bandolino footwear and handbag business to Authentic Brands Group (ABG)

Nine West Holdings has sold its Nine West and Bandolino footwear and handbag business to Authentic Brands Group (ABG) in a deal valued at more than US$340m.

According to a statement by Nine West, ABG's winning offer at the bankruptcy auction was over $140m more than the firm's stalking horse bid.

The news follows an announcement by Nine West in April in which it confirmed it had filed for bankruptcy and would sell its namesake and Bandolino footwear and handbag business to ABG.

"Authentic Brands Group is an industry leader and we are pleased that they will bring the dedicated expertise and resources to manage the next stage in the life of two strong brands," said Ralph Schipani, CEO of Nine West Holdings. "We are pleased to have completed this important step in our restructuring and are now focused on moving forward with the reorganisation of our remaining businesses with the support of our key stakeholder groups."

As part of the transaction, ABG assumes all licensing partnerships and marketing initiatives for the Nine West and Bandolino brands. With respect to the brands' footwear and handbag categories, ABG has appointed Marc Fisher Footwear to operate the footwear businesses and Signal Products, Inc to operate the handbag and SLG businesses.

The deal elevates ABG's footwear and accessories business to more than $2bn in global retail sales and brings its portfolio to almost $8bn.

"This was a highly competitive bidding process, which is a testament to the strength of these brands and we are thrilled that the outcome had ABG taking ownership of Nine West and Bandolino," said Jamie Salter, chairman and CEO of ABG. "The addition of these two brands enhances ABG's growing lifestyle portfolio, while launching our global footwear platform. 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 around the world."

The sale is subject to approval by the bankruptcy court and certain customary closing conditions. A hearing to approve the sale has been scheduled for 18 June and the sale is expected to be complete by 15 July.