Last month, RTW grimly warned that its future was in “substantial doubt” and that a bankruptcy filing was imminent due to temporary closings caused by the pandemic. In a statement Monday, the company said it “expects to close a significant part, if not all, of its physical stores” after clearance sales are completed.
With the shift to working from home, shopping for work clothes has gone out of style, jeopardizing the future of office-dependent businesses, including Brooks Brothers, Ascena, owner of Ann Taylor, and Tailored. Brands.
RTW is the latest shopping mall retailer to see its fortunes dwindle due to the pandemic and changing consumer tastes. Sur La Table, J.Crew, JCPenney, Brooks Brothers and Muji have filed for bankruptcy in recent weeks and warned of major store closings and job cuts.
“The combined effects of a challenging retail environment coupled with the impact of the coronavirus pandemic have caused significant financial problems for our business, and we hope it will continue to do so in the future,” RTW CEO Sheamus Toal said in a statement. He added that bankruptcy was the “best way to unlock the value.”
In March, the company suspended store employees and a “significant portion” of its corporate employees, resulting in an 80% reduction in weekly payroll expenses. RTW has almost 400 stores and 5,000 employees. Its shares were withdrawn from the New York Stock Exchange last week.
RTW said its online store will continue. It seeks to sell its online operations and the intellectual property of centuries-old businesses.
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