The parent ofNew York & Co. is preparing for bankruptcy filing which would include closing all of the chain store’s clothing discounts, according to people with knowledge of the matter.
RTW Retailwinds Inc., which also owns Figure and Happy Fashion x Nature,warned earlier this month that bankruptcy was likely, citing loan default, and said it could close many, if not all, of its 387 stores.
A representative from New York, RETURN is denied any comments. People with knowledge of the case asked not to be identified because the plans were not made public.
Nationally, the shutdown due to the Covid-19 epidemic, after years of declining shopping center traffic, has pushed some of the more familiar retail names into bankruptcy, includingJ. C. Penney Co. andNeiman Marcus Group Inc.
Founded a century ago by Lerner Stores, the company changed its name to New York & Co. in the late 1990s and has become a mainstay of the team’s mainstay with celebrities like Eva Mendes and Kate Hudson.
Former President and Chief Marketing and Customer Agent, Traci Inglis, said in March that it was time to move on to a “numerically dominant” brand.
But the pandemic forced all of its stores to close temporarily the same month, according to the company’s annual report, making it impossible to revolve around what RTW called significant and recurring operating losses. Some stores started re-opening in the first week of June.
To cope with the cash crisis, RTW did not have to pay suppliers and withheld in April and May from renting to its owners, leading to an avalanche of notices of default, the company said. In addition, store closings, cut them into inventory and other assets. Bankers atWells Fargo & Co. have given the company until June 30 to make good on its delinquent loans.
The stock, which, when sold for more than $ 23 in 2005, is now trading at less than 30 cents per share.
– With the help of Kim Bhasin