RTW Retailwinds, the parent company of New York & Co., has filed for Chapter 11 bankruptcy protection. The company said it plans to permanently close most, if not all, of its stores and has begun liquidation sales.
It is also considering selling its e-commerce operations and related intellectual property.
“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 chief executive officer 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,” Toal said.
According to the company website, RTW Retailwinds operates 378 retail and outlet stores in 32 states. It said about 92% of its brick-and-mortar locations are back open.
In early June, in an 8-K filing, the company said there was “substantial doubt” about its ability to continue and a bankruptcy filing was probable. It also said a loan agreement with Wells Fargo might go into default.
In April, in a regulatory filing, it disclosed that chief marketing officer Traci Inglis had resigned from the company along with four board members. Inglis had been expected to become CEO.
On Monday, it said it expected to repay the balance of about $12.7 million to Wells Fargo by August 31.
RTW reported net sales of $827 million for the 2019 fiscal year.
The company’s stock was delisted last week.
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