RTW Retailwinds Goes Bankrupt
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RTW Retailwinds Inc., operator of the New York & Co. and Fashion to Figure chains, has filed for Chapter 11 bankruptcy and has put itself up for sale.
The bankruptcy of the mid-tier women’s special retailer, filed in the U.S. Bankruptcy of the District of New Jersey, has been expected for weeks. It joins the nation’s growing list of recent retail bankruptcies, including Neiman Marcus, J. Crew Group, J.C. Penney and Pier One.
The company expects to close a significant portion, if not all, of its brick-and-mortar stores and has launched a liquidation process while also continuing to reopen certain stores that were temporarily closed due to the pandemic. In addition to the New York & Co. low-priced fashion stores and the Fashion to Figure plus-size stores, RTW operates Kate Hudson’s Happy x Nature collection. New York & Co. has been known for its Eva Mendes collection emphasizing dresses.
RTW said it is “evaluating any and all strategic alternatives, including the potential sale of its e-commerce business and related intellectual property.”
As previously announced, on July 2 the company entered into an mended and restated loan and security agreement and joinder with Wells Fargo Bank, National Association, as administrative agent and lender. The company anticipates the full repayment of the approximately $12.7 million remaining outstanding balance under the loan agreement by Aug. 31.
“The combined effects of a challenging retail environment coupled with the impact of the COVID-19 pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future,” said Sheamus Toal, chief executive officer and chief financial officer of RTW Retailwinds. “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. I would like to thank all of our associates, customers and business partners for their dedication and continued support through these unprecedented times.”
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