RTW Retailwinds, the mother or father firm of New York & Co., has submitted for Chapter eleven individual bankruptcy defense. The firm explained it plans to completely near most, if not all, of its retailers and has begun liquidation sales.
It is also thinking about offering its e-commerce functions and linked intellectual residence.
“The combined effects of a hard retail surroundings coupled with the impression of the coronavirus pandemic have induced significant financial distress on our enterprise, and we expect it to carry on to do so in the foreseeable future,” RTW Retailwinds main government officer Sheamus Toal explained in a assertion.
“As a outcome, we believe that that a restructuring of our liabilities and a prospective sale of the enterprise or parts of the enterprise is the very best path forward to unlock worth,” Toal explained.
In accordance to the firm web page, RTW Retailwinds operates 378 retail and outlet retailers in 32 states. It explained about 92% of its brick-and-mortar places are back open.
In early June, in an eight-K filing, the firm explained there was “substantial doubt” about its potential to carry on and a individual bankruptcy filing was probable. It also explained a mortgage settlement with Wells Fargo could go into default.
In April, in a regulatory filing, it disclosed that main marketing officer Traci Inglis had resigned from the firm alongside with four board customers. Inglis had been envisioned to become CEO.
On Monday, it explained it envisioned to repay the equilibrium of about $twelve.7 million to Wells Fargo by August 31.
Neiman Marcus, Sur la Desk, J.C. Penney, Brooks Brothers, and Fortunate Brand name have also sought individual bankruptcy defense amid the COVID-19 world pandemic.
RTW claimed net sales of $827 million for the 2019 fiscal calendar year.
The company’s inventory was delisted last week.
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