RTW Retailwinds Inc., owner of New York & Company and Fashion to Figure, announced that it and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey. The company has filed customary motions with the Bankruptcy Court that will authorize, upon Bankruptcy Court approval, the company’s ability to maintain operations in the ordinary course of business, including the payment of employee wages and benefits without interruption, payment of suppliers and vendors in the normal course of business and the use of cash collateral.
The company expects to close a significant portion, if not all, of its brick-and-mortar stores, and it has launched a store closing and liquidation process. The company will continue to operate its business in the ordinary course in the near term, including continuing to re-open its previously temporarily closed brick-and-mortar stores. It is evaluating any and all strategic alternatives, including the potential sale of its e-commerce business and related intellectual property.
“The combined effects of a challenging retail environment coupled with the impact of the coronavirus (COVID-19) pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future,” said Sheamus Toal, CEO and chief financial officer of RTW Retailwinds Inc. “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. I would like to thank all of our associates, customers and business partners for their dedication and continued support through these unprecedented times.”
