May 26, 2024

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Passion For Business

New York & Co. Owner Files for Bankruptcy Protection

RTW Retailwinds, the parent firm of New York & Co., has submitted for Chapter 11 personal bankruptcy defense. The firm said it designs to forever shut most, if not all, of its outlets and has started liquidation revenue.

It is also contemplating marketing its e-commerce functions and related mental house.

“The combined outcomes of a hard retail surroundings coupled with the impression of the coronavirus pandemic have brought about considerable economical distress on our business, and we count on it to go on to do so in the potential,” RTW Retailwinds main government officer Sheamus Toal said in a assertion.

“As a outcome, we think that a restructuring of our liabilities and a opportunity sale of the business or portions of the business is the greatest path ahead to unlock worth,” Toal said.

In accordance to the firm web-site, RTW Retailwinds operates 378 retail and outlet outlets in 32 states. It said about ninety two% of its brick-and-mortar spots are again open up.

In early June, in an eight-K filing, the firm said there was “substantial doubt” about its capability to go on and a personal bankruptcy filing was probable. It also said a loan arrangement with Wells Fargo may go into default.

In April, in a regulatory filing, it disclosed that main internet marketing officer Traci Inglis had resigned from the firm alongside with four board members. Inglis had been predicted to turn into CEO.

On Monday, it said it predicted to repay the balance of about $12.seven million to Wells Fargo by August 31.

Neiman Marcus, Sur la Desk, J.C. Penney, Brooks Brothers, and Blessed Manufacturer have also sought personal bankruptcy defense amid the COVID-19 worldwide pandemic.

RTW claimed web revenue of $827 million for the 2019 fiscal 12 months.

The company’s inventory was delisted past 7 days.

Michael Brochstein/SOPA Photos/LightRocket through Getty Photos

COVID-19, New York & Co., retail, RTW Retailwinds