New York & Company To Close Stores After Parent Company Files Bankruptcy

Another retailer finds itself in bankruptcy as a result of the coronavirus. RTW Retailwinds filed for Chapter 11 bankruptcy protection Monday, announcing at the same time that it will close a “significant portion, if not all” of its stores.

RTW Retailwinds operates the New York & Company, Fashion to Figure, and Happy x Nature brands.

The apparel retailer is exploring all its financial options at this time, including the sale of its e-commerce business and related intellectual property.

RTW said it will liquidate its stores as they reopen amid local and state guidelines during the COVID-19 pandemic. The company had faced temporary closures in March because of the coronavirus.

“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,” Sheamus Toal, CEO and chief financial officer of RTW Retailwinds, 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,” he added.

RTW said upon bankruptcy court approval that it expects to continue operations under the normal course of business, including paying employee wages and benefits as well as continuing payment to its suppliers and vendors.

Previously, RTW entered into a loan agreement with Wells Fargo Bank and said it anticipates paying the outstanding balance of $12.7 million by Aug. 31.

RTW has hired Cole Schotz P.C. as its restructuring counsel and BRG LLC as its restructuring advisor. B. Riley FBR Inc. will serve as the retailer’s investment banker.

The company was incorporated in 1918 and grew to 378 brick-and-mortar stores across 32 states.

RTW Retailwinds joins Neiman Marcus, J. Crew, Brooks Brothers, and JC Penney, among others, in filing for bankruptcy protection during the coronavirus pandemic.