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Aurelius Renews Feud Over Sycamore’s Nine West Payday

  • New lawsuit targets directors and officers of retailer parent
  • Sycamore paid $120 million in 2018 for releases from liability
Inside a Nine West store in Mexico City.
Inside a Nine West store in Mexico City.Photographer: Susana Gonzalez/Bloomberg
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Disgruntled investors, including hedge fund Aurelius Capital Management, have ignited a fresh legal battle over Nine West Holdings Inc. -- a year after the retailer exited bankruptcy with different owners, a new name and less debt.

The lawsuit is the creditors’ second case involving the footwear chain after their investments suffered losses of more than 80%. They sued Sycamore Partners last year, a case that was settled after Sycamore paid them $120 million to drop claims that its 2014 buyout rendered Nine West insolvent while enriching shareholders by over $1 billion.