New York & Company store in North Brunswick Township, New Jersey.
Michael Brochstein | SOPA Images | fake pictures
New York & Co.’s parent company RTW Retailwinds announced Monday that it has filed for Chapter 11 bankruptcy protection and plans to permanently close most, if not all, of its stores.
The company said it has already started clearance sales, with approximately 92% of its physical locations reopened during the coronavirus pandemic. He said he is potentially evaluating selling his e-commerce operations and related intellectual property in bankruptcy proceedings.
RTW Retailwinds now joins a growing list of retailers who have filed for bankruptcy during the Covid-19 crisis as companies have struggled to obtain liquidity with the forced closure of their stores. Other victims include Neiman Marcus, J.Crew, JC Penney, Brooks Brothers, and Lucky Brand.
“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial distress in our business, and we look forward to continuing to do so in the future,” said RTW Retailwinds CEO and CFO, Sheamus Toal. statement.
“As a result, we believe that a restructuring of our liabilities and a possible sale of the business or parts of the business is the best way to unlock value.”
RTW Retailwinds operates 378 retail and outlet stores in 32 states, according to its website. In addition to New York & Co., some of its other brands include Fashion to Figure and Happy x Nature.
On June 3, the company had already warned that there was “substantial doubt” about its ability to continue as a going concern, calling a bankruptcy filing “probable.” He also warned at the time that he may be in default on a loan agreement with Wells Fargo.
RTW Retailwinds said Monday that it anticipates fully repaying the outstanding balance of approximately $ 12.7 million remaining under that particular loan agreement.
Read the full press release here.
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