U.S. retail chain Nine West has struck a deal with its Canadian licensee to buy back and run the stores in Canada under its eponymous retail name.
In July, Sherson Group Inc. which owns the rights to the Nine West chain in Canada, sought protection from its creditors in a court filing, revealing it owned millions of dollars to various creditors, including $19 million to the U.S. fashion chain that supplies the shoes, handbags and jewellery for Canadian stores.
Sherson owned 49 Nine West stores in Canada, with more than 500 employees.
Under a deal announced Monday, Nine West create a new subsidiary that will buy back 45 store leases and certain contracts related to Sherson's business operations
Sherson also owned the retail chains Easy Spirit and Anne Klein, which will also now be under Nine West's control.
Sherson last ran into serious financial trouble in the recession of 2009 when the company closed about a dozen Nine West stores and slashed other expenses.