RTW Retailwinds Inc. (OTC: RTWI), parent to New York & Company, revealed Monday it had filed for Chapter 11 bankruptcy protection. The century old retailer will be permanently closing the majority of its store, if not all.
According to the company it has already begun the closure and liquidation of several stores. 92% of its locations have managed to reopen after the lockdown was lifted. As of now the chain is considering selling its e-commerce enterprise in bankruptcy proceedings.
Additionally, RTW is also the owner of Fashion To Figure and Happy x Nature. It had cautioned last month that a bankruptcy filing was probable in the near future. Nevertheless, the filing will permit the company to stay in business as it figures out a way to pay back creditors.
As COVID-19 impacts the economy, RTW Retailwinds is one of many who have been forced to file for Chapter 11 bankruptcy. Other companies affected include Neiman Marcus, J.Crew, J.C. Penney, Brooks Brothers and Lucky Brand.
“The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future,” RTW Retailwinds CEO and CFO Sheamus Toal said in a statement.
“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.”
RTW says it plans on repaying the entirety of its remaining USD12.7 Million loan.