New York & Co. parent company RTW Retailwinds announced Monday it had filed for Chapter 11 bankruptcy protection and plans to permanently close most, if not all, of its stores.
The company said it has kicked off liquidation sales already, with about 92% of its bricks-and-mortar locations back open during the coronavirus pandemic. It said it is evaluating potentially selling its e-commerce operations and related intellectual property in bankruptcy proceedings.
RTW Retailwinds now joins a growing list of retailers that have filed for bankruptcy during the Covid-19 crisis, as companies have been strained for liquidity with their stores forced shut. Other victims include Neiman Marcus, J.Crew, J.C. 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 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.
“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.”
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.
The company on June 3 had already warned there was “a substantial doubt” about its ability to continue as a going concern, calling a bankruptcy filing “probable.” It also warned at the time it might be in default of a loan agreement with Wells Fargo.
RTW Retailwinds said Monday it anticipates fully repaying the roughly $12.7 million remaining outstanding balance under that particular loan agreement.
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