RTW Retailwinds’ plan to file for bankruptcy got a push after the American retailer said that it would shut down over 150 stores or all its stores whenever Chapter 11 filing takes place.

Following its default on its credit facility terms, RTW Retailwinds has signed a forbearance agreement with its bank – Well Fargo. Speaking to the media, the retailer said that the deal with the bank calls for reduction in available letters of credit, new repayment conditions, cash sweeps and increased rate of interests, among other changes to loan.

When New York & Company had changed its name to RTW Retailwinds in November 2018, the objective was to build a strong corporate identity.

However, fast slump in sales followed by the pandemic crisis has forced the retailer to think of closing down its stores and making a mark digitally.

Back in February, its working capital was minus US $ 21.4 million and it’s been slumping ever since – as it has been with most of the retailers.

In its 10-K released today, RTW Retailwinds said it no longer has money to meet its capital needs and to add to it the operating losses have caused a retained deficit of US $ 164.6 million.

Also, in April, it got a major setback when its CEO-elect resigned along with 4 board directors.

RTW Retailwinds is a specialty retailer of fashionable women’s apparels and accessories and has 463 locations across the globe. It generates revenue of US $ 929.1 million.