Over the last 2 months, there have been strong speculations about RTW Retailwinds Inc. initiating the process of finalising a 10-K form and expressing its inability to continue.
And it finally happened yesterday (13 July), when the parent company of New York & Co. filed for Chapter 11 and also announced that it will be permanently shutting down majority of its stores – if not all.
Here it is imperative to mention that the American retailer runs 378 retail and outlet stores in as many as 32 states in the country.
While confirming that liquidation sales have started, the retailer said that it is also plans to sell its e-commerce business as well as the intellectual property.
Sheamus Toal, CEO and CFO, RTW Retailwinds, said, in a statement, that the challenging scenario of the retail sector along with the pandemic impact was causing heavy financial distress on company’s business and it is not going to change soon.
The retailer, reportedly, also said that it anticipates fully repaying the approximate US $ 12.7 million outstanding amount under the loan agreement with its bank Wells Fargo.
Known for its exquisite women’s apparels and fashion accessories, RTW Retailwinds also owns Happy X Nature and Fashion to Figure and generates revenue of US $ 929.1 million.