Sycamore Partners LLC Keen To Acquire Bad Assets Is 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 the company has tried to improve its business by closing stores, reducing administrative costs and improving product quality, the industry pointed out that under the many challenges such as loss of customers and high inventory in department stores, the recovery of Jiu Xi needs more time.

However, the only thing to be consoled is that the cash flow of nine Hei is still abundant, and the most recent debt maturity is 2019, and there is a $200 million revolving loan.

Due to the surge in debt, Nine West Sycamore Partners LLC intends to liquidate the women's shoes.

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

The US shoe brand Nine West Jiu Xi is facing a risk of liquidation.

On Monday, Bloomberg quoted Moodie and Nine for lowering their credit rating on the company of Nine WestHoldings Inc Inc, saying that due to the sharp rise in debt ratio, Sycamore Partners LLC, the parent company of nine West company, intends to do so.

Proceed with liquidation.

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

The intention of LLC.

However, following the market rules of the most inclined creditors, the bankruptcy judge still approved the Sycamore Partners LLC's acquisition of A ropostale Inc..

In 2014, when Sycamore Partners LLC bought Nine West Ju hee parent The Jones Group Inc at a high price of $2 billion 200 million, the market predicted that Nine West nine hee would not have a good result every day.

Rating agency Moody's Investors Service Moodie released a report in August 26th that lowered the credit rating of Nine West Holdings Inc Inc from Caa1 to Caa2, and the outlook was 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 EBITDA rose from $90 million a year earlier to $52 million, 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.

Exchange.

Although Nine West Jiu Xi has tried to improve its business by shutting down shops, 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 many challenges such as customer churn, high inventory and so on.

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 Nine West is losing its leading position in the key US market and its market share has been eroded due to marketing mistakes, quality problems and electricity supplier competition.

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

At present, restructured company and creditors have approached Nine West Jiu Xi, hoping that the company will reduce its debts through restructuring.

It is reported that the company's current debt is as high as $1 billion 700 million, which is equivalent to income, and the senior unsecured note, which has a 427 million interest rate of 8.25%, will expire in 2019.

In the past three years, however, due to the weakness of the major retail markets in the United States and China,

In the doldrums, coupled with the increasing caution of Nine West's main wholesale channels and shopping centres, actively clearing inventory and reducing orders, and the popularity of sports, fashion and leisure shoes market performance is increasingly challenged.

Jeffrey Van Sinderen, a B. Riley & Co analyst at investment bank, commented that Nine West's business 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.

In the Chinese market, previous sources revealed that the headquarters of Nine West in Dongguan, China, had already been dissolved.

In view of the consistent style of Sycamore Partners LLC, the market expressed concern about the future of Nine West, as the private equity fund had already gained a lot of cash by selling The Jones Group Inc and Kurt Geiger, Inc, and cable.