New York & Company parent files for bankruptcy

RTW Retailwinds plans to permanently close hundreds of stores

RTW Retailwinds CEO and CFO Sheamus Toal and a New York & Company store (Getty, LinkedIn)
RTW Retailwinds CEO and CFO Sheamus Toal and a New York & Company store (Getty, LinkedIn)

New York & Company’s parent company is the latest chain to file for bankruptcy as the coronavirus has piled additional pressure on an already challenging retail landscape.

RTW Retailwinds, whose other brands include Fashion to Figure and Happy x Nature, filed for Chapter 11 protection Monday, and has already kicked off liquidation sales, CNBC reported.

“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future,” RTW Retailwinds CEO and CFO Sheamus Toal said in a statement.

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“As a result, we believe that a restructuring of our liabilities and a potential sale of the business or portions of the business is the best path forward to unlock value.”

The retailer expects to close most, if not all, of its 378 stores, which are located in 32 states. RTW Retailwinds’ e-commerce operations and related intellectual property may also be sold as part of the bankruptcy proceedings.

The company had warned of a likely bankruptcy filing in early June, and says that it now expects to fully repay the $12.7 million outstanding balance on a loan agreement with Wells Fargo.

About 92 percent of the retailer’s bricks-and-mortar locations have reopened following coronavirus-related shutdowns. [CNBC] — Kevin Sun