RTW Retailwinds, which owns New York & Co., has agreed to sell its online business and intellectual property (IP) to Sunrise Brands, LLC – an apparel firm.
Sunrise Brands, which operates clothing labels like Eva Longoria and American Rag, will be buying RTW Retailwinds’ assets for a cash purchase price of US $ 20 million plus assumption of certain liabilities, including honouring gift cards.
The agreement is subject to hearing and final approval at the US Bankruptcy Court in early September.
The deal will also include sale of all of RTW Retailwinds’ prominent online platforms like www.nyandcompany.com, www.fashiontofigure.com, in addition to selling its rental subscription businesses at www.nyandcompanycloset.com and www.fashiontofigurecloset.com
The company, reportedly, believes that the agreement with Sunrise Brands will help RTW Retailwinds to continue operating its online business and serving its loyal customers.
It’s been tough last few years for RTW! Its efforts to enhance digital business and bring down number of bricks-and-mortar stores from 432 at the start of 2018 to 387 have not helped sales in any way.
Add to all this, operating loss in 2019 almost touched US $ 62 million and the story hasn’t been much different for the company in last 5 years. 2020 has turned out to be worse – thanks to store closures and lockdowns, which eventually made the company file for Chapter 11.
Last month, RTW had filed for bankruptcy following which it had also announced closure of majority of its stores.
The century-old RTW Retailwinds is known for its women’s apparels and fashion accessories.