In re: Nine West Holdings, Inc., et al., Chapter 11 Bankruptcy Proceedings
Nine West Holdings filed for Chapter 11 bankruptcy in April 2018 following an April 2014 leveraged buyout and subsequent restructuring sponsored by Sycamore Partners.
Akin Gump Strauss Hauer & Feld retained Analysis Group on behalf of the Official Committee of Unsecured Creditors of Nine West Holdings (the Committee) to assess the reasonableness of the financial projections used in the solvency opinion associated with the leveraged buyout.
The Committee alleged that the corporate restructuring following the leveraged buyout, in which the various businesses formerly owned by the Jones Group, Inc. were separated, left the company overleveraged and deprived of successful clothing and footwear business lines.
Managing Principal Michael Holland supported Jan Kniffen, a retail and apparel expert, in his examination of apparel and footwear market trends, Nine West Holdings’ business environment and recent financial performance, and reasonable alternative financial projections for Nine West Holdings. Mr. Kniffen submitted initial and rebuttal expert reports and testified at deposition. Prior to the start of the trial, the Committee agreed not to pursue claims against Sycamore in exchange for Sycamore increasing its previous settlement offer to a total of $115 million. In addition, Nine West Holdings and the Committee agreed to an amended bankruptcy plan, reducing debt by more than $1 billion.