RTW Retailwinds, the father or mother company of New York & Co., has submitted for Chapter 11 personal bankruptcy security. The company said it plans to completely shut most, if not all, of its retailers and has started liquidation income.
It is also looking at marketing its e-commerce operations and relevant mental property.
“The combined outcomes of a hard retail surroundings coupled with the influence of the coronavirus pandemic have triggered important monetary distress on our enterprise, and we hope it to continue on to do so in the potential,” RTW Retailwinds main executive officer Sheamus Toal said in a statement.
“As a result, we think that a restructuring of our liabilities and a probable sale of the enterprise or portions of the enterprise is the best route forward to unlock worth,” Toal said.
According to the company internet site, RTW Retailwinds operates 378 retail and outlet retailers in 32 states. It said about 92% of its brick-and-mortar places are back again open.
In early June, in an 8-K filing, the company said there was “substantial doubt” about its capability to continue on and a personal bankruptcy filing was probable. It also said a financial loan agreement with Wells Fargo might go into default.
In April, in a regulatory filing, it disclosed that main promoting officer Traci Inglis experienced resigned from the company alongside with 4 board associates. Inglis experienced been envisioned to develop into CEO.
On Monday, it said it envisioned to repay the harmony of about $12.seven million to Wells Fargo by August 31.
Neiman Marcus, Sur la Desk, J.C. Penney, Brooks Brothers, and Lucky Manufacturer have also sought personal bankruptcy security amid the COVID-19 global pandemic.
RTW described net income of $827 million for the 2019 fiscal yr.
The company’s stock was delisted very last 7 days.
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