RTW Retailwinds is now joining a growing list of retailers who filed for bankruptcy during the Covid-19 crisis, as businesses were forced into cash flow and their stores had to close. The other victims are Neiman Marcus, J. Crew, JC Penney, Brooks Brothers and Lucky Brand.
“The combined effects of a difficult retail environment and the impact of the coronavirus pandemic have caused significant financial distress on our business, and we expect this to continue in the future,” said the RTW Retailwinds CEO and CFO Sheamus Toal in a press release. declaration.
“As a result, we believe that restructuring our liabilities and a potential sale of the business or parts of the business is the best way to unlock value. ”
RTW Retailwinds operates 378 retail stores and outlet stores in 32 states, according to its website. In addition to New York & Co., some of its other brands include Fashion to Figure and Happy x Nature.
On June 3, the company had already warned that there was “a substantial doubt” about its ability to continue its activity, qualifying as “probable” a bankruptcy. He also warned when he might be in default of a loan agreement with Wells Fargo.
RTW Retailwinds said on Monday that it plans to fully repay the outstanding balance of approximately $ 12.7 million under this particular loan agreement.
Read the full press release here.