Here’s another fashion retailer that’s become a victim of COVID-19!
The American wear-to-work retailer for women, New York & Co., is on the verge of bankruptcy, as warned by its owner RTW Retailwinds.
Reportedly, RTW Retailwinds said that it is in the process of finalising a 10-K form that summarises company’s financial performance – reflecting ‘substantial doubt about company’s ability to continue’.
Coronavirus seems to have taken a heavy toll on the retailer with several of its stores closed, many corporate biggies terminated and staff furloughed. Adding to all this, the company hasn’t paid rent to landlords for the months of April and May.
Besides, it confirmed that it has also not paid its vendors.
Notably, all the New York & Co. stores have been temporarily shut since 19 March owing to the deadly virus.
RTW Retailwinds said in a filing that firm believes that it will not be able to raise any additional capital without seeking protection under the bankruptcy laws.
Yesterday’s filing is the latest in the list of bankruptcy announcements that include many other big labels like Neiman Marcus, JCPenney and Stage Store.
The company is spread across 550 locations globally and generates an annual revenue of US $ 929. 1 million.