Recently, RTW Retailwinds, the parent company of New York & Co., the American niche brand headquartered in New York, announced that it has filed for bankruptcy protection and plans to permanently close most of its stores.
A growing number of retailers are filing for bankruptcy during the coronavirus crisis. As corporate stores were forced to close, product liquidity was tight, and century-old store RTW Retailwinds also joined the bankrupt industry.
According to foreign media reports, the company has begun clearance sales. While not marketed as a liquidation sale, it is offering 40% off all online items, including new arrivals. The company said it is currently evaluating the potential sale of its e-commerce business and related intellectual property in bankruptcy proceedings.
Sheamus Toal, chief executive and chief financial officer of RTW Retailwinds, said in a statement: “The challenges of the retail environment, coupled with the impact of coronavirus, have taken a toll on our business. We have experienced severe financial distress and we expect this to continue in the future. Therefore, we believe that restructuring the debt and possibly selling the business or part 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., the company also includes other brands such as Fashion to Figure and Happy x Nature.
In fact, the company issued a warning as early as June 3 that there were “significant doubts” about its ability to operate as a going concern, citing the possibility of filing for bankruptcy. Very big”.
The company also warned at the time that it might breach its loan agreement with Wells Fargo. Under the agreement, the company expects to fully repay the outstanding balance of approximately $12.7 million under the loan agreement by August 31, 2020. </p
