Nine West Bankruptcy Filing Is Imminent

As we initially anticipated less than three months ago, Reuters reports that Nine West Holdings - which has been in talks with its creditors over a possible deal to restructure its debt for months now - intends to file for bankruptcy, possibly as soon as Friday.

The 30-day countdown to Nine West's bankruptcy filing started in March after the company missed a debt payment, entering its grace period.

To help make its creditors whole, the failed retailer plans to sell the intellectual property of its flagship footwear brand to Authentic Brands Group, the company that, among other acquisitions, bought the flagging Juicy Couture brand back in 2013. However, Reuters cautioned that the deal with Authentic Brands hasn't been finalized just yet, which is said to be in talks with a partner to orchestrate the deal.

The plan, according to Reuters, is that the IP sales will help Nine West pay down its debt, increasing the likelihood that it eventually emerges from bankruptcy. Luckily for the company's creditors, it still has a few profitable business lines, including a denim line that's sold in mass-market retailers like Walmart, and which can actually be monetized if need be.

Nine West

The fate of Nine West is only the latest in a seemingly endless stream of retail bankruptcies that have left malls around the country pockmarked with vacancies. Recently, retail vacancies jumped 8.4% in Q1 2018 - a six year high.

Retail bankruptcies accelerated in 2017 with at least 30 retailers filing and more than 8,500 retail outlets closing. But according to the latest Moody's research report on the sector, the rating agency now forecasts at least six retail and apparel issuers defaulting over the next 12 months, with most of these occurring in the first half of the year.

With the long-feared "retail apocalypse" in full swing, even the CEO of Urban Outfitters, admitted a year ago that the "retail bubble has now burst."

If there is a silver lining for the retail industry, it's that the industry's default rate is expected to peak at just over 12% this March; still,  Moody's cautioned that the still-high default forecast for the remainder of 2018 points to more pain before this lower ratings rung stabilizes. But Moody's assessment could be too optimistic, as the list of retail corporate debt - yes, Nine West is among it - coming due would suggest.

Retailer

The proceeds from the sale will pay down some of Nine West’s approximately $1.5 billion in debt, increasing the chances that the company will emerge from a planned bankruptcy, the sources said.

Comments

1033eruth boostedhorse Fri, 04/06/2018 - 09:21 Permalink

I think its more of a hallmark of the ponzi scheme in commercial real estate whereupon, shopping mall owners charge thousands per month for a space for which it is impossible to conduct enough volume in sales to pay the landlord and all other expenses.  

Economy is BOOMING in Grand Island, NE but the big indoor shopping center has so many empty stores.  There is no point in running a business just so you can keep the landlord happy.  

In reply to by boostedhorse

Yen Cross Fri, 04/06/2018 - 05:15 Permalink

 Amazoned.

  How people can buy fitted clothing on line, is beyond me?

  Must be all the stretchiness, and fat bastard roly poly 12 sandwich eating mutants.

 I still use a personal tailor, when purchasing suits.

El Hosel Fri, 04/06/2018 - 05:20 Permalink

"even the CEO of Urban Outfitters, admitted a year ago that the "retail bubble has now burst."

URBN is in great shape, the Federal short squeeze algo has their stock riding high on the back of "silly" fundamental "Investors".

also see.  BJRI,LULU,GOLF,DKS,HIBB, DDS, RRGB these companies stocks refuse to give in to the Fundamentals, which is nice!

karenm Fri, 04/06/2018 - 05:57 Permalink

But no really, the Economy is BOOMING and there are JOBS GALORE! And everyone is working more hours and making BIG BUCKS!

 

Oh wait, that's the top Execs, emptying out the piggy bank before bankruptcy, which the FED adds in to their models as "Income for employees"

 

 

Endgame Napoleon karenm Fri, 04/06/2018 - 09:51 Permalink

They count the jobs that are advertised every single month. Those “jobs” are staffed by multiple temp agencies. Those are not jobs—they are gigs.

You cannot rent the crappiest, one-room apartment, expecting to pay the rent more than a few months on those so-called jobs. Those jobs would not be included on any honest jobs report.

You go into often large-scale businesses as a temp, seeing many managers and so-called “permanent staff” taking **TONS** of time off while NOT meeting the quotas, nor even trying to meet quotas between their large swathes of excused absenteeism.

Yes, you know whether or not people in adjacent cubicles are absent from their cubicles or making calls. When the cubicles are silent, unoccupied or feature screens lit up with baby-pic posting instead of customer information, it is unavoidably noticeable.

If you lack “somethin’ comin in” from a spouse, a child support check that covers rent or monthly welfare that covers rent and groceries and a refundable EITC child tax credit up to $6,431, it is very hard to get one of the permanent “voted-best-for-moms” office jobs.

The same employer that rejects you as a “non culture fit” for a 98%-mom-staffed, absenteeism-gang permanent job will hire you as a hard working, experienced, non-culture-fit temp, EVEN if you have a degree, experience and relevant licenses in the field. 

They will hire you as a revolving-door temp to bump up the sales numbers of the baby-vacationing momma managers, after which they will churn you. 

The retail service sector and food services have always been youth-dominated enclaves of funemployment and drudge employment at living-in-moms-basement wages. 

Since moms with unearned income for womb productivity dominate them, the vast majority of private-sector office jobs likewise do not pay enough to cover rent. 

In office jobs, ALL of the so-called permanent employees have unearned income, mostly for womb productivity, albeit a couple, here and there, have retirement income. Almost every manager is a parent and married, often to another high earner, concentrating two of the few decent-paying jobs under one roof.

When dual-earner couples sew up the few jobs that pay anything, it leads to a consumer pool at the top that has plenty of money to spend at Nine West or at any of the failing mall stores.

But dual-high-earner parents spend a lot of their salaried, non-job-creating wealth on lengthy and frequent vacations, oftentimes overseas, not spending the money in American malls the way previous generations did.

The highly paid parents, like their low-paid, mom-dominated, crony back-watching staffs, have a lot of time off to vacation.  

Vacations for overworked, dual-high-earner parents (“the talent”) include: 

  • Spring Break — Two weeks off for babies;
  • Early Summer Vacation — Two week’s off for kids (respite for busy-working parents, with grandparents keeping the kids);
  • Mid Summer Vacation — One week off for babies;
  • Late Summer Vacation — Two weeks off, with kids at grandmas to accommodate the busy-working parents’ getaway);
  • Back to School Vacation — One week off to be with kids;
  • Halloween Preparation Week — One week off for moms;
  • Thanksgiving — Two week’s off for family-togetherness time;
  • Pre-Christmas — Week off for busy-working moms;
  • Christmas — Two weeks off;
  • Post Christmas — One week off;
  • New Year’s Eve — Getaway for busy-working parents;
  • MLK Day Teach Baby About Diversity — One week off.

 

This does not count their pregnancy leaves, nor does it count the many mornings and afternoons off for kids. The cumulative excused time off for crony parents at the top and the bottom of the wage pool far exceeds their PTO. 

You work hard, missing zero days, staying at work all day instead of leaving work early every day, unlike most of the permanent mom-gang staff, and you meet their quotas every single month.

That sort of behavior—along with staying in the building the whole day to help paying customers, while watching mom employees leave the building, day after day, heedless of phones ringing off the hook—results in churning. Crony-parent managers invariably churn you after praising you lavishly for awhile, as you help build up their bonus numbers.

After all of your hard work, when unprofessional mom gangs churn you, they do it in the meanest way possible, trying to get you to quit before you qualify for UC to cover rent between low-wage churn jobs.

When non culture fits have high sales numbers, it requires a sadistic group effort among the mommas. But absentee mom gangs figure out ways to bully out employees who perform the job well and are nice to their colleagues, particularly when the non-culture-fit employees also come to work every day and stay all day, unlike most of the culture-fit mommas.

Rare is the manager who rejects the mom-gang work culture.

Many of us have never received a dime in UC, even though we have to pay into that system and even though we are always among the employees with sky-high sales generation and account-retention numbers in these so-called jobs, which are more like social clubs, complete with all-important and ridiculous Halloween dress-up days, adult cubicle Easter egg hunts, Family Day parking-lot picnics, etc., etc., etc.

Many Americans have finally figured out that so-called “real jobs” are a crock for most of the employees who are not cutthroat enough to bully their way into one of the few crony-parent management jobs that actually covers the cost of rent.

About the only time you see some of these frequently absentee parents coming to work regularly, and without back watching their fellow absentee parents, is when they are viscously—and I do mean viscously—competing for one of the few good-paying management jobs. 

Watch your step! Cat fight!!!!

They’ll be digging through the files to spot mistakes of their momma competitors, trying to get you to confirm their momma competitor’s laxness to the higher ups. 

Try to stay out of the middle of their attempts to crush their “momma-who-needs-the-money” competition. All mommas are said to “need the money” from these management jobs, even when a husband makes plenty to support 2 households in style or when a child support check covers the cost of a condo with a posh zip code.

As you scramble to wait on the flood of customers, doing the work of two or three absentee mom employees, be sure to keep out of the way of the cat-claw mommas, warring for a management position that they will be absentee from CONSTANTLY once they get it.

......................for kids, of course, for kids....See their desks for a sea of proof that the absenteeism is for kids..........

People who can stay out of this senseless waste of effort do so for as long as they can. During that time, they have less money to spend at Nine West, Wal*Mart or wherever.

They also do not [need] to spend as much money.

You have to spend money to keep a low-wage job. You spend money going to and from the job, and on all kinds of things that you do not buy when unemployed.

You spend while employed until you are churned despite meeting the sales generation and account-retention numbers every month, although most of the retained employees do not even bother to meet the numbers. When this churning comes unexpectedly, it can hurt you in more ways than just losing the income if you have spent too much on the low-wage job, especially if you have taken on the expense of an apartment.

Many who lack the back up of spousal income or pay from government for sex and reproduction out of wedlock do not bother anymore, hence the fact that half of womb-less men in the prime-earning years between 18 and 34 live with their parents in adulthood, not that they are the only ones.

Low-wage, temp and part-time jobs are expensive, and the choice is often which low-wage job is more expensive? Which job requires you to buy clothes you cannot afford—clothes that you might not be able to use in your next low-wage churn job or on your private time? Which lengthy, hour-or-more-long commute will eat up even more of your monthly pay that is mostly soaked up by rent?

There are always biannual expenses, like state-required licensing for professions where 99% of the salaried jobs with benefits in many corporate offices go to unlicensed moms who can accept low pay due to unearned income for womb productivity from spouses, ex spouses or welfare. 

Almost none of the jobs pay enough to cover rent that absorbs more than half of your earned-only income as a non-crony-parent non culture fit.

Things that should lead to higher wages, like working your can off to meet quotas, result in the exact opposite, whereas non-quota-meeting culture-fit mommas who are on lengthy and frequent vacations and off hours early every afternoon gain job longevity if not decent pay.

After awhile, even though you grew up watching the commercials and perusing malls, you begin to wonder if Nine West is really worth it? 

In reply to by karenm

DaveA Endgame Napoleon Fri, 04/06/2018 - 15:27 Permalink

The sooner guys like you figure out it's a scam, that having a penis entitles you to half the pay for twice the work*, the sooner it will end. You can stop paying rent, live in a tent in the woods, and if it gets too cold, commit petty crimes to score a few months in jail.

* Men have always been expected to work themselves to death for the benefit of women, but they used to receive reproductive sex with a faithful woman as part of the deal.

In reply to by Endgame Napoleon

fedupwhiteguy Endgame Napoleon Sat, 04/07/2018 - 09:40 Permalink

here, endgame, i can be a broken record too....

50% of women have a man already picked out as plan b if their current relationship fails. (http://www.dailymail.co.uk/femail/article-2769593/HALF-women-fall-partn…)
60% of women admit to having an affair. (http://magazine.foxnews.com/love/cheating-statistics-do-men-cheat-more-…)
69% of wives initiate divorce. (http://www.huffingtonpost.com/entry/women-more-likely-than-men-to-initi…)
90% of wives, wherein the couple are college-educated, initiates divorce. (http://www.yourtango.com/experts/cindy-holbrook/top-10-reasons-why-wome…)
10% of children are false paternity. (http://disinfo.com/2011/02/one-out-of-ten-people-werent-fathered-by-the…)
95% of genetic counselors lie about paternity. (http://thelibertarianrepublic.com/paternity-fraud-is-it-legal-to-lie-ab…)
41% of 1st marriages end in divorce. (https://www.mckinleyirvin.com/Family-Law-Blog/2012/October/32-Shocking-…)
60% of 2nd marriages end in divorce.
73% of 3rd marriages end in divorce.
82.2% of women granted child custody. (http://www.census.gov/prod/2011pubs/p60-240.pdf)
Child support payments can be extended beyond 18 years of age. (http://dadsdivorce.com/articles/child-support-age-of-emancipation-in-yo…)
Alimony payments continue even when women cohabitate with another man. (http://farzadlaw.com/california-divorce/will-my-wife-get-spousal-suppor…)
Palimony payments forced on men who had live-in girlfriends. (https://www.reference.com/government-politics/states-palimony-laws-ee50…)
Prenups are thrown out in favor of fairness. (http://www.dailymail.co.uk/news/article-3525528/Judges-say-ignore-pre-n…)
Divorce devastates men financially (paying for 2 households) & emotionally (loss of access to children). (https://eternalbachelor.wordpress.com/2007/07/23/back-to-basics-divorce…)
Postponing intercourse until 26+ avoids life's pitfalls (cock carousel riders are bad news all around). (https://youtu.be/um3EmS9DKsI?t=581)
Virgin brides divorce less than cock carousel riders. (http://socialpathology.blogspot.com/2010/09/virgin-bride.html)
Women start losing their Sexual Market Value at 20 y.o. (http://www.hookingupsmart.com/2013/10/31/relationshipstrategies/conclus…)
Women gain weight after marriage. (http://www.thehealthsite.com/fitness/5-reasons-why-women-gain-weight-af…)
Frequency of sex drops off after marriage. (https://pairedlife.com/physical-intimacy/Reasons-Why-Sex-Decreases-Afte…)
Woman are just crazy for a man's money. (https://au.answers.yahoo.com/question/index?qid=20130625025358AAcogQy)
Sperm donors can be forced to pay child support. (http://www.nydailynews.com/life-style/health/sperm-donor-sued-child-sup…)
 

In reply to by Endgame Napoleon

hwy Fri, 04/06/2018 - 06:14 Permalink

Bring in the tariff war.

Walmart etc will be next to file for bankruptcy.

Then workers will have to sell their houses to pay off their loans.

Bankers will buy the houses on the cheap and then rent out the houses or sell to foreigners.

win- win for investors

win - win for unemployed workers, get stamps, no need to work.

win - win for families, more family time.

Nobody loses

Davidduke2000 Fri, 04/06/2018 - 06:25 Permalink

the shit is hitting the fan very hard. luckily the us unemployments numbers are so low and the people excluded from the labor force is so high and is moving quickly to 100 million or 1/3 of the total us population.

the stench of the us dead economy is more powerful than that shit train stuck in Alabama, we are seen every week huge chains disappearing into bankruptcy and getting liquidated from lack of any interests by vulture funds who are letting them melt into oblivion. 

Last of the Mi… Fri, 04/06/2018 - 06:50 Permalink

Classic example of a clueless (or patently evil, take your choice) Fed printing money for corporate welfare which is then used for more debt sucking up all available assets up to and including personal disposable income.

Shibumi2 Fri, 04/06/2018 - 07:19 Permalink

Retail is a joke and has been for a long time.

 

Store after store....strip mall after strip mall....all filled with the same chinese made shit. Planned obsolescence? Thats an 80s concept where one could expect 3-5 years out of a major purchase. Now shit flies apart after 12-24 months.

 

I was looking for a shtf generator and ended up buying a 1961 generator made by GM. Cast iron and zero electronics. Built to run 24/7 and I can fix it myself.

 

Let it all go BK...amazon too. That shit aint worth the effort

JailBanksters Fri, 04/06/2018 - 07:43 Permalink

Age old thing ...

How can you have so many stores holding so many items until they're sold.

None of these type of stores make any financial sense.

They're all running on Credit, just not sustainable.