NEW YORK – RTW Retailwinds, Inc., women’s specialty apparel retailer, voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of New Jersey on July 13.
The company owns NY&Co, which had a location at the Natick Mall. RTW Retailwinds operates about 378 NY&Co locations.
RTW Retailwinds has filed customary motions with the Bankruptcy Court that will authorize, upon Bankruptcy Court approval, the Company’s ability to maintain operations in the ordinary course of business, including, among other things, the payment of employee wages and benefits without interruption, payment of suppliers and vendors in the normal course of business, and the use of cash collateral.
The Company “expects to close a significant portion, if not all, of its brick-and-mortar stores,” it said in the filing.
The Company has launched a store closing and liquidation process.
The Company, however, will continue to operate its business in the ordinary course in the near term, including continuing to re-open its previously temporarily closed brick-and-mortar stores, when and where appropriate.
RTW Retailwinds said it was “evaluating any and all strategic alternatives, including the potential sale of its eCommerce business and related intellectual property.”
On July 2, the Company entered into Amendment with Wells Fargo Bank to repay about $12.7 million By August 31.
The combined effects of a challenging retail environment coupled with the impact of the Coronavirus pandemic have caused significant financial distress on our business, and we expect it to continue to do so in the future,” RTW Retailwinds CEO and CFO Sheamus Toal 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.