RTW Retailwinds, the father or mother corporation of New York & Co., has filed for Chapter eleven personal bankruptcy protection. The corporation stated it ideas to forever shut most, if not all, of its merchants and has started liquidation profits.
It is also thinking of selling its e-commerce functions and linked intellectual property.
“The blended outcomes of a challenging retail setting coupled with the impression of the coronavirus pandemic have brought on major fiscal distress on our company, and we be expecting it to keep on to do so in the upcoming,” RTW Retailwinds chief executive officer Sheamus Toal stated in a assertion.
“As a result, we feel that a restructuring of our liabilities and a opportunity sale of the company or parts of the company is the best route forward to unlock benefit,” Toal stated.
According to the corporation web site, RTW Retailwinds operates 378 retail and outlet merchants in 32 states. It stated about ninety two% of its brick-and-mortar places are again open up.
In early June, in an eight-K submitting, the corporation stated there was “substantial doubt” about its means to keep on and a personal bankruptcy submitting was possible. It also stated a financial loan settlement with Wells Fargo may well go into default.
In April, in a regulatory submitting, it disclosed that chief advertising and marketing officer Traci Inglis had resigned from the corporation together with four board members. Inglis had been anticipated to turn into CEO.
On Monday, it stated it anticipated to repay the stability of about $twelve.7 million to Wells Fargo by August 31.
Neiman Marcus, Sur la Desk, J.C. Penney, Brooks Brothers, and Lucky Brand have also sought personal bankruptcy protection amid the COVID-19 global pandemic.
RTW described net profits of $827 million for the 2019 fiscal yr.
The company’s stock was delisted last 7 days.
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